UPDATE 1-S.Korea to lift crude oil import tariff in '09

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SEOUL, Dec 23 (Reuters) - South Korea will lift its tariff on imports of crude oil to 3 percent from the current 1 percent from March 2009, the first of such increases since April 2004, the finance ministry said on Tuesday.

The flexible quota tariff, mostly known as import tariff, on crude oil will rise from the current 1 percent to 2 percent in February, and then to 3 percent in March.

"Due to a recent plunge in crude oil prices, we have decided to gradually lift the tariff back to a standard level," the ministry said in a statement.

South Korea has been lowering import tariffs in past years in line with international prices of raw materials, to ease the burden of domestic importers when prices are high.

Along with the increase, import tariff on gasoline, diesel, heating and fuel oil will also rise to 3 percent in March from the current 1 percent.

Prices for Dubai grade, the benchmark crude used by South Korea, have plunged to $40.46 a barrel as of Dec. 19, from $140.70 in July, the statement said. The WTI crude price also fell below $40 a barrel in December from an all-time high of near $150 a barrel in July.

South Korea, the world's fifth-largest crude importer, is highly dependent on foreign energy reserves. The country had implemented a number of contingency measures earlier in the year to combat surging oil prices and other raw materials.

Tariff on liquefied petroleum gas (LPG), which had been abolished, will resume to 1 percent from January 2009, while tariff on liquefied natural gas (LNG) will remain at the current 1 percent. (Reporting by Angela Moon; Editing by Jacqueline Wong)