CPC Corp Holds Domestic, Industrial Gas Prices Steady Amid Rising LNG Costs

Taiwan's state-owned oil supplier CPC Corp has announced that it will keep natural gas prices for domestic and industrial users unchanged this month. However, prices for companies that generate electricity will increase by 5.83% due to rising liquefied natural gas (LNG) costs. The price hike is attributed to global market uncertainty amid stalled negotiations between the US and Iran, as well as European countries' efforts to build up LNG inventories before winter.

CPC Corp stated that it will absorb additional costs for industrial users, having absorbed NT$140 billion in losses on sales since 2021. The company's decision is in line with government policies to stabilize consumer prices.

The price increase for the electricity sector aims to better reflect higher LNG costs, CPC said. However, whether this translates into higher electricity costs remains uncertain, as state-run utility Taiwan Power Co has a history of absorbing input cost increases to keep power costs down for end-users.