Amid skyrocketing gasoline and diesel prices, the government is reviewing another fuel tax cut.

According to the finance ministry on Saturday, authorities are considering a tax reduction of 37 percent, the maximum allowed by law.

Under the traffic tax code, fuel taxes are divided into a basic tax rate and high tax rate. Before tax cuts were implemented, the government had applied the high rate, with 820 won per liter in tax imposed on gasoline. 

From last November to April, a 20 percent tax reduction was introduced on gas, diesel and liquefied petroleum gas butane. That was then expanded to 30 percent, which lowered taxes on gasoline to 573 won per liter.

The government is now reviewing applying the basic rate, which is 736 won per liter. A 30-percent discount equals 516 won, which is 57 won lower than the current level.

A final decision is expected to come as early as Sunday during an emergency economic meeting chaired by finance minister Choo Kyung-ho.