Sales of diesel cars may be hit as the government is reviewing raising diesel fuel costs and lowering gasoline prices amid growing concerns on toxic nitrogen oxide emitted by diesel engines, according to news reports Tuesday.

“The government is considering raising diesel fuel costs and lowering gasoline prices to remove economic benefits going to diesel car owners,” a local media outlet reported, citing a senior government official of the environment ministry. 

The speculation on lowering gasoline prices came after local civic groups opposed the rise in diesel costs, claiming the government is trying to empty drivers’ pockets on the pretext of preventing fine dust.

The Environment Ministry denied the news report on Tuesday, saying, “Nothing has been confirmed yet.”

The diesel-powered car market here has grown to account for more than half of total car sales on government backing, which has designated them as eco-friendly vehicles since 2010. Signs of a slowdown, however, are starting to show following a series of emissions scandals and as diesel engines are being blamed for emitting toxic nitrogen oxide, which causes fine dust.

Korea’s Cabinet Office is set to convene a meeting on Wednesday with relevant ministries -- ministries of environment, land and energy -- to coordinate their views on the fine dust issue.

By Shin Ji-hye (shinjh@heraldcorp.com)