The South Korean government has announced a two-month extension of the temporary fuel tax cut originally set to end this month, aiming to alleviate the financial burden on citizens due to fluctuating international oil prices. The Ministry of Economy and Finance disclosed that the current tax cut rates of 7% for gasoline and 10% for liquefied petroleum gas (LPG) will remain in effect until April 30. This extension will bring about significant price reductions: a decrease of 57 won per liter for gasoline, 58 won per liter for diesel, and 20 won per liter for LPG butane.

In recent weeks, domestic gasoline prices have shown a downward trend, recording nine consecutive weeks of decline. According to the Korea National Oil Corporation's oil price information system, the average price of gasoline at nationwide gas stations dropped to 1,687.9 won per liter, down by 2.7 won from the previous week. However, tensions between the United States and Iran have contributed to an increase in international oil prices, adding to the overall volatility of the market which affects domestic prices as well.

The fuel tax reduction initiative was first implemented at the end of 2021 in response to soaring international oil prices that had begun to strain the budgets of ordinary South Koreans. Since then, the government has continued to extend this tax relief, adjusting the duration based on inflation rates and currency fluctuations, as part of its broader economic strategy to stabilize the domestic market amidst global price variations.