Second week of fuel tax cut… Average gasoline price cut by 29 won to 1687 won

Gasoline prices nationwide fell for the second week in a row due to the effect of lowering the fuel tax. Earlier, the government decided to cut the fuel tax by 20% for six months from the 12th.

According to Korea National Oil Corporation’s oil price information site Offinet on the 27th, the average price of gasoline at gas stations nationwide in the fourth week of this month (November 21-25) was 1,687 won and 50 won per liter, down 29.1 won from the previous week.

Gasoline prices rose sharply for the eighth week in a row. It jumped to 1,800 won on the 6th of this month, and in the second week it was 1807 won per L, the highest in 7 years. After that, it turned to a downward trend from the 12th, when the fuel tax cut began.

The weekly decrease in gasoline prices was 90 won 40 last week and 29 won 10 this week. Diesel prices at gas stations nationwide also fell 23 won and 70 won from the previous week to 1511 won and 90 won per liter.

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The fuel tax on gasoline and diesel is a collective term for the tax levied on the sale of oil. These include transportation, energy, and environmental taxes (transportation taxes), education taxes, and driving taxes. As the transportation tax was lowered to 423 won as a result of the fuel tax cut, the total fuel tax decreased from 745 won 89 to 596 won. Considering the impact on VAT, the price of gasoline should drop by 164 won per liter. However, so far, the second week of the fuel tax cut, the actual cut has been around 120 won.

This is interpreted as the reason that the supply of oil to which the fuel tax cut has been applied has not yet been expanded to all gas stations, and in the case of privately operated gas stations, relatively high prices are maintained until the stock is exhausted. However, the remaining cuts are expected to be gradually reflected in the actual price.

Oh Jung-min, reporter at Hankyung.com blooming@hankyung.com

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