Report shows South Korean taxes account for 54.7% of oil prices

A South Korean government report said that taxes imposed on gasoline sold at local pumps accounted for 54.7% of prevailing prices. This has fueled public outcry and demands for the lowering of oil taxes on petroleum products. Pump oil prices have risen in the past years because of soaring prices in the international market. Consumers have been calling for tax reductions to lower the prices, but the government has refused, saying that such a move will harm the country’s fiscal soundness and encourage more people to use fuel. The South Korean government said that its energy tax rate on domestic fuel is one of the lowest among the member countries of the Organization for Economic Cooperation and Development. The prevailing gasoline price in many gas stations is KRW2,000 (US$1.67) per liter. (September 19, 2011)