The Ministry of Economic Affairs is considering offering oil subsidies to select groups as the next step in minimizing the effects of high gas prices, MOEA Minister Shih Yen-shiang said April 11.
Under this initiative, farmers and fishermen will receive 14-percent rebates on oil purchases for farming equipment and fishing boats, while operators of public buses, taxis and shuttles for the disabled will be compensated for the extra costs they have to shell out, Shih said.
The government has helped alleviate pain at the pump by demanding that the state-run CPC Corp. soak up half of the recent increases of oil beginning at the end of 2010.
According to Shih, the local weighted petroleum index has reached an 18-month high of US$117.4 per barrel. “If the index continues to go up and exceeds US$120 per barrel, we will consider lifting the absorption rate to two-thirds,” he noted, adding that the government and CPC will then each absorb one-third of the increases.
The minister dismissed suggestions by lawmakers that the government put a freeze on further gas hikes. “I do not agree with the notion of a freeze, since all taxpayers would have to pick up the tab,” Shih said. “That route is not an option for now.”
According to the CPC, its latest round of price increases took effect April 11, which saw the local costs of 95-octane unleaded gasoline reach NT$33.1 (US$1.14) per liter, among the lowest in Asia.
In 2008, Taiwan activated a similar six-month subsidy program to cope with rising fuel prices. (HZW)
Write to Audrey Wang at audrey@mail.gio.gov.tw