In the News

MOEA lifts cap on Taiwan gas prices

Motorists queue at a Taipei City gas station April 1 in an attempt to beat rising oil prices set to take effect the next day. (CNA)

• Publication Date：04/02/2012
• Source： Taiwan Today
• By  Aaron Hsu

The cost of gasoline in Taiwan jumped roughly 10 percent April 2 following a decision by the Ministry of Economic Affairs to ease price controls in light of higher charges for crude oil worldwide.

The government had previously followed a policy whereby it would absorb half the cost of all increases in international oil prices. Taiwan relies on imports for nearly 100 percent of its petroleum.

Depending on the type of gasoline purchased, prices will move up between NT$2.4 (US$0.08) and NT$3.7 per liter, the ministry said.

“This is a tough but necessary decision, for if we do not cancel the price discounts the losses incurred by state-run oil provider CPC Corp. will be too huge to bear,” MOEA Minister Shih Yen-shiang said at a news conference April 1.

Formosa Petrochemical Corp., the country’s second largest oil vendor, announced the same price increases immediately after the conference.

International oil prices have surged 43 percent since last December, Shih said, but CPC has absorbed most of the cost increases and only raised domestic oil prices by about 10 percent. In the first two months of the year the company has lost NT$12.5 billion.

“MOEA will also set up a task force aimed at improving the CPC’s procurement and operation efficiency,” he added.

Despite the price hike, Taiwan’s gas prices remain the lowest in Asia. A liter of 95 unleaded gasoline, for example, is now priced at NT$35.5 in Taiwan. It costs NT$52.45 and NT$59.03 in Singapore and South Korea, respectively, the ministry said.

Because of the oil price increases, the number of people taking public transportation is expected to increase. As a result, Taiwan’s carbon emissions are expected to be 650,000 metric tons lower this year.

But public transport operators will be cushioned from the gas price hike under a support measure announced by the Ministry of Transportation and Communications. City buses, long-range coaches, ferries and taxis, the MOTC said, will have their subsidies increased from NT$2.40 to NT$5 per liter. (HZW)

Write to Aaron Hsu at pj1210meister@mail.gio.gov.tw