Seoul, March 26 (IANS) South Korea will significantly expand its temporary fuel tax cut in a bid to ease the financial burden on consumers amid the prolonged conflict in the Middle East, the finance ministry said on Thursday.

Under the latest measures to support people’s livelihoods, the current tax cuts — 7 percent on gasoline and 10 percent on diesel — will be expanded to 15 percent and 25 percent, respectively, reports Yonhap news agency.

The measure, which had been set to expire in April, will be extended through the end of May, according to the ministry.

As a result, fuel taxes per litre, including value-added tax, will fall by 65 won (US$0.04) to 698 won for gasoline and by 87 won to 436 won for diesel.

The decision is aimed at easing the burden of rising oil prices and supporting small and midsize businesses, as well as vulnerable households affected by the prolonged conflict.

South Korea first introduced the fuel tax cut in November 2021 as a response to rising energy prices. The government has since extended the measure, adjusting the rates in accordance with changes in the global energy market.

Meanwhile, South Korea’s low-cost carriers (LCCs) are cutting international flights to mitigate the impact of surging fuel costs amid prolonged tensions in the Middle East, industry sources said on Thursday.

Air Premia Co. plans to suspend 10 flights on its Incheon-San Francisco and Incheon-New York routes in May, following an earlier decision to cancel 26 flights on the Incheon-Los Angeles route and six on the Incheon-Honolulu route between April 20 and May 31, the sources said.

Eastar Jet Co. plans to suspend 50 flights on the Incheon-Phu Quoc route from May 5 to May 31, citing limited local refueling conditions in Vietnam.

Air Busan Co. and Aero K Airlines Co. have already reduced flights on some international routes starting in April.

The country’s three largest LCCs — Jeju Air Co., T’way Air Co. and Jin Air Co. — are also considering cutting services on select Southeast Asian routes, according to industry watchers.

Jet fuel prices in Asia and Oceania rose 16.6 percent to US$204.95 per barrel in the week of March 13-20, compared with the previous week, and were sharply higher than the prior month’s average, according to the International Air Transport Association.

—IANS

na/