South Korea's Ministry of Finance announced on Thursday that it will significantly increase temporary fuel tax cuts to alleviate the economic burden on consumers resulting from ongoing conflicts in the Middle East.

Under the latest support measures, the current fuel tax reductions for gasoline and diesel—7% and 10%, respectively—will be raised to 15% and 25%.

The ministry stated that the measure, originally set to expire in April, will be extended through the end of May.

As a result, the fuel tax per liter of gasoline, including value-added tax, will be reduced by 65 won (approximately $0.04) to 698 won, while the tax per liter of diesel will be lowered by 87 won to 436 won.

The move aims to ease pressure from rising oil prices and support small and medium-sized enterprises as well as vulnerable households affected by prolonged conflict.

South Korea first introduced the fuel tax reduction in November 2021 in response to rising energy prices. Since then, the government has extended the measure and adjusted tax rates in line with changes in the global energy market.