![A person refuels a car at a gas station in Seoul on Oct. 19. [YONHAP]](https://imgnews.pstatic.net/image/640/2025/10/22/0000078635_001_20251022165820366.jpg?type=w860)
The government will extend a temporary fuel tax cut that was set to expire this month for another two months, through the end of the year, but at a reduced rate, officials said Wednesday.
The Ministry of Economy and Finance said it made the decision “after considering oil prices, inflation trends and the fiscal impact,” adding that it sought to prevent a sharp increase in the public’s fuel costs.
Under the revised plan, the tax cut on gasoline will shrink from 10 percent to 7 percent. The reductions for diesel and liquefied petroleum gas butane will decrease from 15 percent to 10 percent.
The government first introduced the fuel tax cut at the end of 2021 to ease the financial burden on households amid a surge in global oil prices. Since then, it has extended the measure 18 times in response to changes in oil and inflation trends.
Following the latest extension, the amended enforcement decrees of the Transportation, Energy and Environment Tax Act and the Individual Consumption Tax Act will be reviewed by the Cabinet next week and take effect on Nov. 1.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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