Oil Tax

[Anchor Lead]

The government will lower oil taxes levied on gasoline, diesel and other fuel by 15 percent starting Tuesday for a duration of six months. But it may take some time for consumers to feel the effects of the tax cut due to reasons such as different inventory levels at gas stations.

[Pkg]

Starting Tuesday, fuel taxes will be reduced temporarily. The government said it will lower taxes imposed on gasoline, diesel, liquefied petroleum gas (LPG) and butane by 15 percent for six months. Oil refineries will supply fuel at a discounted price from Tuesday until May sixth of next year. The tax cut is expected to lower gasoline and diesel prices by up to 123 won per liter and 87 won per liter, respectively. The government said the measure is intended to relieve financial burdens on the public from rising global oil prices and sluggish domestic demand. The record 15 percent oil tax cut is expected to save drivers an estimated two trillion won. But it may take some time before the price cuts are reflected at individual gas stations. Pumping stations directly operated by oil refineries will mark down prices immediately...but privately owned stations will reflect the discount after they sell their current stockpile. The government will activate a monitoring system with related agencies so the fuel surcharge cut can take effect as soon as possible.