Taipei: State-owned oil supplier CPC Corp., Taiwan announced Saturday that it will increase gasoline and diesel prices by NT$1.7 and NT$1.5 per liter, respectively, starting at midnight Monday. This decision comes just a week after the previous price hike.
According to Focus Taiwan, CPC attributed the increase to rising global energy prices driven by tensions in the Middle East. Following the adjustment, the retail prices for 92-, 95-, and 98-octane unleaded gasoline will be NT$32.4, NT$33.9, and NT$35.9 per liter, respectively, while premium diesel will be priced at NT$31 per liter.
By Sunday, CPC would have absorbed an estimated NT$6.99 billion (US$218.13 million) in fuel costs under its price stabilization mechanism, aimed at cushioning the impact on consumers and the industry while maintaining stable domestic prices. The company expressed its hope that these efforts would mitigate the effect of rising oil prices on the general public.
CPC explained that under Taiwan's floating fuel price mechanism, gasoline and diesel prices should have increased by NT$10.9 and NT$13 per liter. To maintain competitive pricing among neighboring Asian countries, CPC is providing subsidies of NT$2.3 per liter for gasoline and NT$5.6 for diesel.
With international oil prices continuing to rise due to the blockade of the Strait of Hormuz, CPC plans to expand the absorption of price hikes for gasoline and diesel by NT$4.1 and NT$7, respectively, between Monday and April 5. In addition, considering the government's program to stabilize the economy during the United States-Iran conflict, CPC will offer further subsidies of NT$5.1 for gasoline and NT$4.5 for diesel, bringing the total subsidized amount to NT$9.2 per liter for gasoline and NT$11.5 for diesel next week.