Azerbaijan, Baku, April 6 / Trend /
South Korea's government said in a statement on Wednesday that it will consider cutting oil taxes if crude prices rise further, without giving details, Reuters reported.
The announcement came soon after the country's smallest crude oil refiner joined three other refiners in lowering gasoline and diesel prices to help the government curb domestic inflation.
The economy ministry statement also said Asia's fourth-largest economy, heavily dependent on energy imports, would consider allowing state-run Korean National Oil Corp (KNOC) to sell oil products to retailers, as it looks to trim energy costs that have helped drive inflation to a 29-month high.
In a meeting with parliament later on Wednesday, Prime Minister Kim Hwang-sik said: "Considering the overall impact on tax revenue, the government will consider cutting oil taxes."
The move, which has come up for consideration repeatedly in recent months, would be in line with government action in the face of high crude prices in 2007-2009, when import tariffs were cut to 1 percent from 3 percent.
Domestic gasoline and diesel retail prices hit record highs of 1,967.2 won and 1,794.6 won per litre, respectively, last week, with government taxes accounting for 47 percent and 38 percent.
The world's fifth-largest crude oil importer has, like other countries, been grappling to contain inflation as global crude prices nudge 2-1/2 year highs.
Hyundai Oilbank said in a separate statement on Wednesday that it would cut domestic gasoline and diesel prices by 100 won ($0.092) per litre for three months from April 7.
The economy ministry statement follows a review by a government task force on oil prices since Jan. 18.
Allowing KNOC, currently restricted to oil exploration and strategic stockpiling, to supply the wholesale market may be aimed at loosening the grip of top refiners on pump prices.