The price of oil is hardly falling from 2,000 won per liter.

As oil prices continued to rise, the government decided to further increase the range of fuel tax cuts from today (1st).

The cut period is until the end of July, and the range of cuts will be increased by 10%p from the existing 20% ​​to 30%.

As a result, gasoline prices were reduced by 83 won per liter, diesel by 58 won, and liquefied petroleum gas and LPG butane by 21 won per liter.


How much can I save on my fuel costs?

Let's look at gasoline first.

The amount of gasoline tax cut announced by the Ministry of Strategy and Finance is 83 won per liter.

Including 10% VAT, the tax per liter will be reduced from 656 won to 573 won.

A person who uses a gasoline vehicle with a fuel efficiency of 10 km per liter at a rate of 40 km per liter every day can save about 10,000 won per month.

(For convenience of calculation, it is assumed that a similar distance is driven on weekends.) Also, the tax for diesel will be reduced from 465 won to 407 won, and for LPG butane from 163 won to 142 won.



In fact, the original fuel tax per liter (which also includes 10% VAT) was 820 won for gasoline, 581 won for diesel, and 203 won for LPG butane.

However, as the global economy, which had been stagnant due to the COVID-19 crisis, revived, the international imbalance in supply and demand for crude oil increased, which led to an increase in oil prices.

In response, the government temporarily lowered the fuel tax by 20% from November 12 last year.

However, after the Russian invasion of Ukraine, etc., when the international oil price exceeded 100 dollars a barrel, the oil tax cut was extended for three months until July 31, and the range of cut was also expanded to 30% from May.



This cut is the largest ever, and compared to the time when there was no fuel tax cut, the tax was reduced by 247 won for gasoline, 174 won for diesel, and 61 won for LPG butane.

However, even if the extent of the fuel tax cut is expanded from today, it does not mean that the consumer selling price will go down immediately.

This is because it takes approximately one to two weeks for each level of gas stations to deplete the stock they received before the tax cut.


If you want to add oil at a reduced price right now

In addition to the problem of running out of stock, there is a possibility that 100% of the price may not reflect the government's fuel tax cut depending on the gas station.

In fact, even if the government lowers the fuel tax, gas stations, which are individual operators, are not obligated to reflect this 100%.

However, this does not mean that there is no way to benefit from the fuel tax cut.

Unlike gas stations, the oil refining industry immediately reflects the cut.



SK Energy, GS Caltex, S-Oil, and Hyundai Oilbank, the four domestic refineries, have decided to immediately reflect the additional fuel tax cuts at 760 directly-managed gas stations across the country starting today.

The government is also planning to extend the operating hours and delivery times of gas stations to a maximum of 24 hours, and to supply the amount allocated to gas stations in installments, so that the amount of the fuel tax cut can be quickly supplied to major stations across the country.



When an article on oil prices like this is published, many people complain about 'Why is the price of oil so quick when it goes up and there are always various reasons when it goes down?'

It is not without explanations from gas stations or the oil industry, but it does not completely quell these complaints.

Today, if the price of the gas station in front of my house is not suitable, how about looking for a gas station directly managed by the Korea National Oil Corporation (KNOC) oil price information service Offinet?