South Korea has announced plans to remove tariffs on liquefied natural gas (LNG) and liquefied petroleum gas (LPG) imports in the second half of this year to help contain inflation and reduce energy costs. 

 

The Ministry of Finance and Economy said tariff rates on LNG, LPG and crude oil used for LPG production will be cut to zero within designated import quotas from July 1.

 

The move is aimed at lowering utility and transportation costs amid continued volatility in global energy prices. South Korea’s consumer inflation rose 3.1 per cent in May compared to a year ago, marking the fastest pace in over two years.

 

The government will also extend tariff relief on several imported fruits and expand the tariff-rate quota system to additional agricultural products and animal feed through the end of the year. The measures are expected to take effect following Cabinet approval.