Temporary #fueltax break expires at the end of this month
(Sejong = Yonhap News) Reporter Lee Jun-seo = As the end of the fuel tax cut measures approaches, attention is focused on whether it will be extended. Given the situation where price volatility continues as international oil prices rise again, there is a trend that can be extended again. If it is extended this time, it will be the 8th time.
According to the Ministry of Strategy and Finance on the 10th, the current temporary fuel tax reduction measure will expire on the 29th. A reduction rate of 25% is applied to gasoline and a reduction rate of 37% is apply to Bhutan diesel and LPG.
The gasoline fuel tax is 615 won per liter (L), which is 205 won lower than the flexible tax rate before the cut (820 won). Diesel prices were reduced by 212 won per litre, and LPG butane prices were reduced by 73 won. If you drive 40 km a day in a gasoline vehicle with a fuel efficiency of 10 km per liter, your monthly fuel cost will be reduced by about 25,000 won.
The official position of the Ministry of Strategy and Finance is that “no decision has yet been made on the fuel tax cut,” but it appears that the risk of price stimulus due to the increase in international oil prices is difficult to ignore. As international oil prices rise again due to the prolonged geopolitical risks emanating from the Middle East, the prices of domestic petroleum products are also rising.
The national average selling price of gasoline went into the earned range of 1,600 in about two months. Diesel price also records 1,501.49 gained on the 6th, exceeding 1,500 gained for the first time in 6 weeks. As a result, there is even a joke inside and outside the Ministry of Strategy and Finance that “international oil prices are becoming unstable as the end of the fuel tax cut approaches.”
Considering the tax burden, the fuel tax needs to be normalized, but why not extend it for an additional 2 to 3 months and then consider whether it should be terminated based on the international oil price trend? The fuel tax cut was introduced as a temporary measure for around six months in November 2021 by the previous government. Even after the regime changed in May 2022, it was repeatedly extended for 6 months, 4 months, or 2 months.
jun@yna.co.kr
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