The Ministry of Industry in South Korea has called on oil companies to avoid significant price increases as the government prepares to scale back its fuel tax cuts starting next month.
Last week, the government announced that it would extend the fuel tax reduction for two more months, until the end of June. However, the tax discount on gasoline will decrease from 15% to 10%, and the discount on liquefied petroleum gas (LPG) will be reduced from 23% to 15%. During a meeting with local oil company representatives, the Ministry of Trade, Industry, and Energy urged them not to raise prices more than necessary to reflect the reduced tax discount and requested their cooperation in preventing sharp price hikes.
As a result of these changes, gasoline prices are expected to increase by 40 won per liter, while diesel prices are set to rise by 46 won per liter.
“Although global oil prices have fallen recently, market uncertainty remains high,” said Yoon Chang-hyun, a senior official at the ministry. “The government will continue to work closely with the industry to ensure stable supply and prices.”
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