The government said the move aims to support households, small and midsize businesses, and other groups affected by rising oil prices.

RF Report

Korea (Rep.) will increase its temporary fuel tax reductions to ease costs amid the Middle East conflict, the finance ministry said Thursday 2 March 2026.

Gasoline taxes will rise from a 7% cut to 15%, and diesel from 10% to 25%.

The measure, originally set to end in April, will now continue through May. Fuel taxes per liter, including VAT, will fall to KRW 698 for gasoline and KRW 436 for diesel.

The government said the move aims to support households, small and midsize businesses, and other groups affected by rising oil prices.

The fuel tax cut was first introduced in November 2021 and has been periodically extended based on global energy prices.

Earlier, South Korea’s Ministry of Economy and Finance announced on 22 April 2025 that it had extended the fuel tax cut for an additional two months, with revised discount rates.