South Korea Extends Fuel Tax Cuts Amid Rising Oil Prices

South Korea's government has extended its fuel tax cuts by two months in response to rising oil prices driven by Middle East tensions. The current policy, which includes a 15% reduction on gasoline and 25% cuts on diesel and butane, was set to expire at the end of September.

The Ministry of Economy and Finance announced the extension, citing the country's need to mitigate potential upward oil price volatility. This decision reflects South Korea's cautious stance on near-term oil price trends due to its dependence on energy imports.

The government emphasized that the extension aims to alleviate economic pressure on households from rising fuel costs. Diesel is a critical fuel for industrial and logistics activities, while butane is widely used in small trucks; both fuel categories receive deeper tax reductions than gasoline.