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Gov't to more than double tax cuts on LPG butane to reduce fuel cost burdens

Published: 23 Apr. 2026, 10:06

A gas station in Seoul on April 22 [YONHAP]

The government announced on Thursday that it will more than double fuel tax cuts on liquefied petroleum gas (LPG) butane products starting next month in a bid to lower the cost burden on consumers.

Gov't to extend fuel tax cut by another 2 months until April

Under the latest measure to support people's livelihoods, the current 10 percent tax cut on butane will be expanded to 25 percent until the end of June, according to the Ministry of Finance and Economy.

The ministry said that it made the decision as the impact of international LPG price hikes caused by the Middle East crisis is expected to be felt domestically beginning in May. It added that the move can help lower the financial burden for butane users, who are mostly in the low-income group.

International butane prices have jumped nearly 50 percent to an average of $800 per ton this month from $540 per ton in March.

Late last month, the government also more than doubled tax cuts on gasoline and diesel from 7 percent and 10 percent to 15 percent and 25 percent, respectively, through the end of May.

The Finance Ministry said the intergovernmental inspection team has discovered 99 cases of petroleum business law violations, including cases of false reports and hoarding, through intensive crackdowns on more than 5,700 gas stations nationwide.

The government will continue its ongoing effort to lower the burden on people's livelihoods, the ministry said, noting that the country saw a modest pace of consumer price inflation of 2.2 percent in March but is expected to see higher inflation in the mid-2 percent range or higher in April due to an increase in fuel prices.

The ministry added that it will also continue measures to stabilize supplies of key industrial materials, such as naphtha and urea, to minimize the impact of the Middle East crisis on domestic industries.

Yonhap