South Korea announced on Thursday that it will more than double the fuel tax reduction for liquefied petroleum gas (LPG) butane products starting next month, aiming to alleviate cost pressures on consumers.

According to the Ministry of Finance, under the latest measures to support household finances, the current 10% tax cut on butane will be expanded to 25%, effective until the end of June.

The ministry stated that the decision was made in anticipation of international LPG price increases, driven by the Middle East crisis, affecting the domestic market beginning in May. It added that the move would help ease the financial burden on butane users, who are predominantly low-income households.

International butane prices rose nearly 50% this month, reaching $800 per ton, up from $540 in March.

At the end of last month, the South Korean government also more than doubled fuel tax cuts for gasoline and diesel, raising reductions from 7% and 10% to 15% and 25%, respectively, until the end of May.

The Ministry of Finance reported that a government inspection team uncovered 99 cases of illegal petroleum operations, including false reporting and hoarding, during a crackdown involving over 5,700 gas stations nationwide.

The ministry emphasized that the government will continue efforts to ease the burden on households, noting that while consumer price inflation rose moderately to 2.2% in March, it is expected to increase to around 2% or higher in April due to rising fuel prices.

Additionally, the ministry said it will continue taking steps to stabilize the supply of key industrial materials such as naphtha and urea, in order to minimize the impact of the Middle East crisis on domestic industries.