Government Extends Fuel Tax Cut by Two More Months Amid Middle East War

The government has decided to extend its fuel tax cut by two more months, through late January next year, to ease the burden of rising international oil prices. Fuel costs for drivers and workers in logistics and fisheries will remain unchanged. Deputy Prime Minister and Minister of Economy and Finance Lee Hyoung-il announced the extension while chairing an emergency economic ministers' meeting at the Seoul Government Complex on the 11th.

Even after the extension, the reduction rates will remain at current levels: 15% for gasoline and 25% for diesel, LPG, and butane. Including value-added tax, the reduction rates are 15% for gasoline and 25% for diesel and butane. The fuel tax reduction amounts to 122 won per liter for gasoline, 145 won for diesel, and 51 won for LPG butane. A driver filling up a gasoline vehicle with 50 liters would save about 6,100 won in fuel costs. However, the two-month extension is estimated to reduce tax revenue by roughly 800 billion won.

At the same meeting, the government also decided to form a pan-government polarization task force, set to begin operations on the 12th. The task force will consist of five working groups—on the dual structure of the labor market and on industry, corporations, regions, generations, and society—each led by a vice minister. Working group meetings will be held weekly, and coordination meetings at least twice a month, with the issues discussed to be reflected in the "2027 Economic Growth Strategy" to be released in December.

The government also raised the threshold for mandatory regional joint contract orders from below 8.8 billion won for national agencies and below 26.5 billion won for public institutions to below 30 billion won. This is expected to increase contract amounts won by regional businesses by up to approximately 800 billion won.