Retail gas station pumps display fuel prices along commercial transport routes in South Korea. (AI-generated image) Support for logistics and small businesses using light utility trucks remains a priority, with the government upholding higher discount rates for commercial transport fuels. Under the renewed rates, the excise tax on gasoline will stay capped at 698 won per liter, representing a 122 won reduction from standard levels. Diesel taxes will continue at 436 won per liter, offering a 145 won decrease, while butane excise rates are fixed at 152 won per liter, providing a 51 won discount per unit. The extension of South Korea’s fuel tax relief scheme seeks to curb inflation expectations domestically while energy markets adjust to persistent international supply challenges. Officials from the Ministry of Finance confirmed that legislative amendments to the Enforcement Decree of the Transportation, Energy, and Environment Tax Act, as well as the Individual Consumption Tax Act, will be submitted to the Cabinet for prompt administrative approval. They emphasized that although domestic inventory levels are stable, ongoing geopolitical tensions in the Middle East necessitate active fiscal management to prevent sharp increases in retail fuel prices. Data from the Ministry of Finance and Economy indicates that energy import costs continue to push up local consumer price indices, making tax policy adjustments a critical tool for intervention. South Korea Extends Fuel Tax Reductions to Sustain Price Stability Beyond tax relief, Minister Koo pledged to bolster diplomatic efforts with major oil-producing nations to diversify energy import sources and lessen dependence on vulnerable shipping routes. Reports