Reducing the oil tax cut...Next month, gas will go up 42 won per liter.

First of all, the oil tax cut will be extended for two months...Consideration of Price Shock
Oil tax cut extended by two months until December...Cutback
Oil tax cut...20% gasoline → 15% diesel → 23%

[Anchor]
Starting next month, the oil tax cut on gasoline and diesel will be reduced, raising the price to around 40 won per liter.

Some observers say that the government may end the oil tax cut due to a tax deficit of nearly 30 trillion won, but it seems to have taken into account the price shock.

Lee Seung-eun of the Ministry of Economy connects to the reporter for more information.

[Reporter]
The Ministry of Strategy and Finance said it will extend the oil tax cut for two months from next month to the end of the year, but will partially reduce the tax rate.

As a result, gasoline will be reduced by 5 percentage points from 20% to 15% and diesel and LPG butane by 7 percentage points from 30% to 23%.

As a result, the price of gasoline will increase by 42 won per liter, 41 won for diesel, and 14 won for LPG butane.

In the case of gasoline, the average price at gas stations nationwide is in the late 1,500 won range, but it will enter the 1,600 won range.

Ahead of the decision, there were many opinions that the three-year oil tax cut should be returned.

This is due to the loss of tax revenue, which is expected to reach 29.6 trillion won, and the growth rate of consumer prices has entered the 1% range for the first time in three and a half years.

The transportation, energy, and environmental tax, which is an oil tax, is expected to be collected 11.2 trillion won this year, which is expected to be KRW 4 trillion less than the main budget.

However, it seems that the decision was made in consideration of price shocks due to the high price of agricultural products, including cabbage, and the possibility of a sudden change in the situation in the Middle East.

The oil tax cut was the third year since November 2021, when international oil prices soared, and this was the 12th decision.

I'm Lee Seung Eun of YTN.