South Korea is considering lowering taxes on oil consumption to help ease financial burdens on low- and mid-income people from sky-high oil prices, the nation's finance minister hinted Monday.

"The government does not deny the need for lowering oil taxes,"

Finance Minister Yoon Jeung-hyun told lawmakers. "It is taking a close look at when and how much the government should push for (tax reduction)."

He noted that the government is also considering reducing tariffs on oil imports.

His remarks come as soaring oil prices are feared to hurt the livelihood of the working-class people, with gasoline prices exceeding 2,000 won (US$1.84) per barrel at many gas stations.

Currently, oil taxes account for around 50 percent of gasoline sold at the pump here.

In a slight change from their previous stance, policymakers recently said that the government is seeking to reduce taxes levied on oil consumption.

Many had argued that it is too early to lower taxes as oil prices remain far below those in 2008, when the government temporarily cut oil taxes in the face of runaway crude prices. Some also expressed concerns that such a move could hurt the nation's fiscal soundness by reducing tax revenue.

Oil prices are being closely watched as a hike could add to the already-high inflationary pressure. South Korea's consumer prices jumped 4.7 percent in March from a year earlier, the fastest price hike in 29 months since October 2008.

(Yonhap News)