In relation to energy tax reform measures to deal with the fine dust problem, all reports prepared by state-run policy think tanks pointed to raising taxes on diesel fuel. As a result, it is highly likely that the current level of diesel price which is about 85 percent of that of gasoline will rise at least to 90 percent.
According to sources from energy ministries and state-run research institutes on June 25, the Korea Institute of Public Finance will hold a public hearing on ways to adjusting relative prices of fuels on July 4. At the public hearing, researchers from the Korea Energy Economics Institute, the Korea Environment Institute, and the Korea Transport Institute will make presentations on energy tax reform proposals.
The inter-agency task force from the Ministry of Strategy and Finance, the Ministry of Trade, Industry, and Energy, the Ministry of Environment, and the Ministry of Land, Infrastructure, and Transportation commissioned a research project to these think tanks in June last year after announcing a special measure against the fine dust problem.
The proposals include about 10 different scenarios for adjusting relative prices of gasoline, diesel, and liquefied natural gas whose current prices are 100 to 85 to 50. All scenarios, however, suggested the price of diesel pegged at about 90 when the gasoline price is set at 100. Still, an official with the finance ministry said, "It doesn't mean the plan to raise the diesel price has been decided within the government ministries."