SEOUL, June 16, (Xinhua): South Korea's finance ministry said Monday that it will extend fuel tax cuts for two more months and consumption tax reductions for six more months. Tax discount rates of 10 percent on gasoline and 15 percent on diesel and liquified petroleum gas (LPG) will remain in place by the end of August, according to the Ministry of Economy and Finance.

It came amid rising worry about volatility in global crude oil prices, caused by geopolitical risks in the Middle East. The fuel tax cuts were introduced in November 2021 to lower consumers' energy costs. The Asian country is especially vulnerable to volatility in global energy prices as it depends on imports for most of its energy.

The ministry planned to extend the consumption tax reductions for cars by the end of December to bolster sagging domestic demand. The discount rate for cars will be cut from 5 percent to 3.5 percent, with a tax deduction cap of 1 million won (730 U.S. dollars) during the six-month period.