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InstaForex - Official partner of Dragon Racing

2021.10.2609:21:00UTC+00S. Korea Cuts Fuel Tax By Record 20%

South Korea's government and the ruling Democratic Party decided to cut the fuel tax to ease the burden on consumers amid surging oil and natural gas prices, Korean media reported Tuesday.

The fuel tax, which is applicable to gasoline, diesel and liquefied petroleum gas, is set to be lowered by a record 20 percent from November 12 to April 30 next year.

Earlier, reports had suggested that the government was considering a 15 percent cut.

The fuel tax was last cut in November 2018, by 15 percent, a record at that time as the oil price crossed $80 a barrel, Yonhap reported.

The government also announced expanded tariff rate quotas for liquefied natural gas exports for the same period.

The expanded in-quota of LNG supplies will help freeze heating bills in November and December, as well as cut industrial energy costs, the Ministry of Economy and Finance said in a statement.

Official forecast suggests that the consumer price inflation is set to exceed 2 percent this year.

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