Fuel tax cut widened in response to the war in the Middle East (petrol down a further 65 won, diesel 87 won)
Source material is a Korean government announcement (in Korean).
On 26 March 2026 the government widened the fuel tax cut (petrol from 7% to 15%, diesel from 10% to 25%), applying it from 27 March, and a May extension carries it through to 31 July.
Key facts
| Measure | Wider fuel tax cut (petrol 7% to 15%, diesel 10% to 25%) |
|---|---|
| Effect on prices | Including VAT, tax on petrol 763 to 698 won per litre (about 65 won lower), diesel 523 to 436 won (about 87 won lower) |
| Applies from | 27 March 2026 |
| Background | Emergency economic review meeting on 26 March (response to the oil price shock) |
| Since then | A May decision extended it to 31 July 2026 |
Last checked:
At an emergency economic review meeting on 26 March, the government widened the fuel tax cut as a response to the oil price shock from the war in the Middle East. The cut went from 7% to 15% for petrol and from 10% to 25% for diesel. Including VAT, the tax on petrol fell from 763 won to 698 won per litre (about 65 won), and on diesel from 523 won to 436 won (about 87 won). The measure applied from 27 March, and a later decision in May extended it to 31 July.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
How much wider is the fuel tax cut?
The cut went from 7% to 15% for petrol and from 10% to 25% for diesel.
How much did prices fall?
Including VAT, the tax on petrol fell from 763 won to 698 won per litre, about 65 won, and on diesel from 523 won to 436 won, about 87 won.
When did it start?
It applied from 27 March 2026, and a later decision in May extended it to 31 July.