Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Gov’t to extend fuel tax cut by another 2 months until April – Full Analysis.
Published: 12 Feb. 2026, 18:39
A driver refuels a car at a gas station in Seoul on Dec. 31, 2025. [YONHAP]
Korea will extend its temporary fuel tax cut for an additional two months through the end of April in a bid to ease the financial burden on consumers amid ongoing volatility in global oil prices, the Finance Ministry said Thursday.
Under the latest extension, the current tax reductions — 7 percent on gasoline and 10 percent on diesel and liquefied petroleum gas (LPG) — will remain in place until April 30, according to the ministry.
The latest decision took into account the uncertainty in domestic and international oil prices, and aims to alleviate fuel cost pressures on the public.
Korea first introduced the fuel tax cut in November 2021 as a response to rising energy prices. The government has since extended the measure, adjusting the rates in accordance with changes in the global energy market.
This latest move marks the 20th extension of the fuel tax relief program.
Yonhap