South Korea to Extend Oil Subsidy until December

South Korea has decided to extend its oil subsidy measures for an additional two months, continuing until the end of December. However, the rates of tax cuts will be reduced, as announced by the finance ministry on Wednesday.

Starting in November, the tax cut for gasoline will be adjusted to 15%, down from the previous 20%, while the tax cuts for diesel and liquefied petroleum gas (LPG) butane will be lowered to 23% from 30%.

These oil tax breaks were initially introduced in November 2021 to help citizens manage rising living costs. Although the measures were intended to be temporary, they have been extended multiple times with various adjustments to alleviate the impact of high fuel prices on the population.