South Korea is reviewing whether to further cut fuel taxes as inflationary pressure has built up amid surging energy costs, the finance minister said Thursday.

The government is considering whether to lower fuel taxes by 30 percent from the current 20 percent as oil prices have spiked amid Russia's invasion of Ukraine.

Early this month, the country decided to extend fuel tax cuts by three months until end-July in an effort to curb inflation.

"We are in the final stage of reviewing whether to expand a cut on fuel taxes," Finance Minister Hong Nam-ki told a government meeting.

He said the government plans to announce additional measures to curb inflation Tuesday, including increasing the number of items subject to import tariff cuts.

South Korea's consumer prices grew 3.7 percent on-year in February amid soaring energy costs. Inflation rose more than 3 percent for the fifth straight month, well above the BOK's inflation target of 2 percent.

The Bank of Korea and the International Monetary Fund forecast Korea's inflation to grow 3.1 percent this year. (Yonhap)