Seoul: South Korea plans to extend the fuel tax cut scheme by two months through the end of July amid growing inflationary pressure in the wake of the Middle East crisis, the Korean Finance Ministry said Thursday. Finance Minister Koo Yun-cheol announced the measure during a meeting with related ministries on efforts to curb price increases.

According to Emirates News Agency, under the plan, the current 15 percent tax cut on gasoline will remain in place through July 31, while a 25 percent cut on diesel will be maintained over the same period. South Korea introduced a price cap system on fuel products to address supply disruptions caused by the Middle East conflict in March, when it implemented the fuel tax cut program, which was originally scheduled to expire this month.

A finance ministry official stated, “We believe the tax cut measure will help ease consumer price pressures,” as reported by Yonhap. The decision reflects the government’s ongoing efforts to mitigate the economic impact of external disruptions and stabilize domestic prices.