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South Korea has opted to prolong its subsidy program for oil products for an additional two months, continuing through December, albeit with decreased tax deduction rates, according to an announcement by the finance ministry on Wednesday, as covered by Reuters. From November onward, the tax reduction for gasoline will be modified to 7%, down from the current 10%, while the tax rate for diesel and liquefied petroleum gas (butane) will decrease to 10% from 15%, the ministry elaborated. This decision is influenced by recent oil price trends, inflation rates, and considerations regarding public financial impacts. The country initially introduced these temporary oil tax reductions in November 2021 and has renewed them multiple times with adjustments.
