Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Gov’t to expand fuel tax cuts for gas to 15% and diesel to 25% – Full Analysis.
Published: 26 Mar. 2026, 14:58
Oil and gas prices are shown at a gas station in Seoul on March 23. [YONHAP]
Korea will significantly expand its temporary fuel tax cut in a bid to ease the financial burden on consumers amid the prolonged conflict in the Middle East, the Ministry of Finance and Economy said on Thursday.
Under the latest measures to support people’s livelihoods, the current tax cuts — 7 percent on gasoline and 10 percent on diesel — will be expanded to 15 percent and 25 percent, respectively.
The measure, which had been set to expire in April, will be extended through the end of May, according to the ministry.
As a result, fuel taxes per liter, including value-added tax, will fall by 65 won ($0.04) to 698 won for gasoline and by 87 won to 436 won for diesel.
The decision is aimed at easing the burden of rising oil prices and supporting small- and mid-sized businesses and vulnerable households affected by the prolonged conflict.
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.
Yonhap