As global oil prices skyrocket due to the Middle East conflict, the era of “2,000 Won per liter” is becoming a reality. In response, the South Korean government announced that starting Friday, March 27, 2026, it will significantly expand fuel tax cuts and implement the second round of the Oil Price Cap system.
1. Expanded Fuel Tax Cuts: How Much Will You Save?
The government has increased the tax reduction rates, which will be extended until the end of May.
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Gasoline: From 7% to 15% cut (Additional saving of 65 KRW per liter)
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Diesel: From 10% to 25% cut (Additional saving of 87 KRW per liter)
This measure focuses on easing the burden on freight drivers and small businesses by providing a larger reduction for diesel.
2. The 2nd ‘Petroleum Price Cap’ System
The government is also capping the price at which refineries supply fuel to gas stations.
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Gasoline Cap: 1,934 KRW
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Diesel Cap: 1,923 KRW
By expanding fuel tax cuts, the government aims to offset the rise in international oil prices and prevent retail prices from surging past the 2,000 KRW mark.
3. Additional Support for Industries and Vulnerable Groups
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Toll Exemptions: Tolls for commercial freight trucks and route buses will be waived for one month.
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Price Monitoring: The number of “special management items” (including pork and eggs) has been increased from 23 to 43 to stabilize public livelihoods.
✅ 3-Line Summary
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Starting March 27, fuel tax cuts will increase to 15% for gasoline and 25% for diesel.
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This will lower gasoline prices by 65 KRW and diesel by 87 KRW per liter.
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While price caps are in place to prevent spikes, the high-oil-price environment is expected to persist.