SEOUL - The South Korean government has decided to extend the current tax reduction on fuel for an additional two months, aiming to mitigate inflation and reduce the economic strain on citizens. Finance Minister Choi Sang-mok, during a press briefing on Friday, disclosed that the extension comes in response to the recent surge in global oil prices, necessitating continued relief measures through the end of April.
According to Yonhap News Agency, South Korea has been offering a 25 percent discount on gasoline consumption and a 37 percent discount on diesel and liquefied petroleum gas, measures that were set to expire this month. Amidst rising oil prices and ongoing geopolitical tensions, including the Israel-Hamas conflict, the nation seeks to stabilize its economy and maintain inflation at manageable levels. With the country heavily reliant on energy imports, such fiscal policies are crucial for sustaining economic growth and consumer price stability. Minister Choi reassured that efforts to stabilize prices will persist, including increased budget allocations for discount programs on essential goods.