Korea may reduce taxes on diesel fuel

A top South Korean policy maker said the government might lower taxes on diesel to ease price pressure stemming from record high global oil prices. Truck drivers and bus associations as well as auto manufacturers have demanded that the government lower taxes on diesel fuel, threatening strikes otherwise, or fare hikes which would further stoke inflation. South Korea levies 655 won (US$0.63) per liter in taxes on diesel fuel, which amounts to one-third of fuel retail prices. (May 30, 2008)