Finance Ministry proposes extending fuel tax cuts through 31 January 2027

The Ministry of Economy and Finance opened a public comment period on 12 November on extending the country’s temporary fuel tax cuts by two months, from 30 November 2026 to 31 January 2027. The proposal appears in two legislative pre-announcements carried in the Official Gazette: 재정경제부공고 제2026-272호 for gasoline and diesel, and 재정경제부공고 제2026-271호 for LPG butane. Comments close on 17 November.

Two pre-announcements, one expiry date

Both notices were issued under Article 41 of the Administrative Procedures Act (행정절차법), which requires the government to give advance notice of subordinate legislation and hear public opinion before enacting it. The first, 재정경제부공고 제2026-272호, amends the Enforcement Decree of the Traffic, Energy and Environment Tax Act (교통·에너지·환경세법 시행령). The second, 재정경제부공고 제2026-271호, amends the Enforcement Decree of the Individual Consumption Tax Act (개별소비세법 시행령). Both texts were dated and signed on 12 November by the Deputy Prime Minister and Minister of Economy and Finance.

The stated purpose is identical in both notices: “to ease the fuel cost burden on the public” (국민들의 유류비 부담을 완화하기 위하여). The current temporary reduction is due to lapse on 30 November 2026; the amendments would move that expiry to 31 January 2027, carrying the reduced levy across December and January.

The rates that would be held

The reductions are applied through the flexible tax rate mechanism (탄력세율), and the amended decrees would fix a single rate for each fuel for the two-month window beginning 1 December 2026:

• Gasoline and similar alternative fuels: 450 won per litre, under the Traffic, Energy and Environment Tax.
• Diesel and similar alternative fuels: 281 won per litre, under the same act.
• LPG butane: 206 won per kilogram, under the Individual Consumption Tax.

The two notices run in parallel because the fuels are taxed under two different statutes: the traffic, energy and environment tax covers gasoline and diesel, while butane falls under the individual consumption tax.

Seventeen days to have a say

Comments must reach the ministry by 17 November 2026, through either channel:

• Online, via the National Participation in Legislation Center (국민참여입법센터, opinion.lawmaking.go.kr).
• By post to the Environment and Energy Tax Division (환경에너지세제과), Ministry of Economy and Finance, Government Complex Sejong Central Building, 42 Doum 6-ro, Sejong 30109.
• By email to jjong2306@korea.kr, by fax to 044-215-8069, or by telephone on 044-215-4331.

Submissions must state support for or opposition to the proposal, with reasons given in the case of opposition, together with the commenter’s name — for institutions and organisations, the body’s name and the name of its representative — address and telephone number, plus any other references. The same division handles enquiries on the detail of both drafts.

What it means at the pump

If adopted as pre-announced, the reduced levy would stay in place through the winter rather than reverting on 1 December, keeping the per-litre and per-kilogram figures above unchanged for two extra months. For drivers, the practical effect is that the tax component of a fill-up in December and January would not step back up to statutory levels.

The change remains at the consultation stage: the ministry is collecting reactions until 17 November, and the amended decrees are drafted to apply from 1 December 2026 to 31 January 2027. Until the texts are finalised, the only firm date in the file is the comment deadline.

Source: Official Gazette of the Republic of Korea (관보), No. 21360, 12 November 2026, notices (공고), pp. 6–7 (official reference: 재정경제부공고 제2026-272호 and 재정경제부공고 제2026-271호).