As the fuel tax cut is expanded from 20% to 30% from the 1st, if the cut is reflected in the market price, it is expected that gasoline will be reduced by 83 won per liter and diesel by 58 won.
Although the government plans to immediately reflect the discount on thrifty and directly managed gas stations across the country, it is expected that it will take 1 to 2 weeks for consumers to actually feel it.
According to the Ministry of Strategy and Finance on the 1st, the fuel tax cut will be expanded to 30% from this day. It has the effect of lowering the total of 247 won, which is an additional cut of 83 won from 164 won per liter of gasoline. Diesel will drop by 174 won and liquefied natural gas (LPG) by 61 won.
In the second half of last year, when the domestic oil price exceeded 1,800 won (gasoline standard) due to the rise in international oil prices, the government has applied a 20% cut in fuel tax as a measure against high oil prices since November 12.
This temporary cut was scheduled to end last month, but as international energy prices soared due to the Russian-Ukrainian war and global supply chain disruptions, the cut was extended for three months until July and the range of cuts was expanded.
Assuming that the daily round-trip mileage of 40km from Bundang, Seongnam to Gangnam Station in Seoul is operated with fuel efficiency of 10km per liter, fuel cost savings of 10,000 won per month are expected based on gasoline. However, in order to do this, the monthly refueling amount must exceed 200,000 won.
According to Opinet, an oil price information service of Korea National Oil Corporation, the price of gasoline at gas stations nationwide as of today was 1,970.95 won per liter. It is calculated that if the additional fuel tax cut is applied, it will drop to the 1800 won range.
Since the oil price currently circulating in the market has risen so much, it is expected that the effect of the cut will be hard to feel compared to when the 20% fuel tax cut policy was first applied in November last year.
It will take some time for the additional expansion to be immediately reflected in the market price. This is because even if the fuel tax cut is widened, the cut cannot be applied until the existing inventory at each gas station is exhausted.
The government is planning to immediately reflect the cut at thrifty gas stations nationwide and at gas stations directly managed by the four major domestic refineries: SK Energy, GS Caltex, S-Oil, and Hyundai Oilbank, but it is analyzed that it will take 1-2 weeks for stocks to be exhausted at general gas stations. .
The government plans to extend the operating hours and delivery time of gas stations to up to 24 hours including weekends so that the fuel tax cut can be reflected as soon as possible, and to supply all gas stations nationwide by dividing the allocated amount of gas stations.
At a macroeconomic and finance meeting on the 29th of last month, 1st Vice Minister of Strategy and Finance Lee Won Lee said at a macroeconomic and finance meeting on the 29th of last month, “Through cooperation among related organizations, including the oil industry, gas stations directly operated by refiners will immediately reflect the additional fuel tax cut from the day the reduction measures are implemented. I will do my best to make it feel better,” he said.