CPC Raises Fuel Prices Amid Soaring Crude Oil Costs

The Ministry of Economic Affairs has urged lawmakers to support the Cabinet's supplementary budget for state-owned energy companies. CPC Corp, Taiwan will raise domestic gasoline prices by NT$0.7 per liter and diesel prices by NT$0.6 per liter this week.

This price increase follows a six-week period where CPC and Formosa Petrochemical Corp kept fuel prices in Taiwan unchanged. The decision comes after international crude oil prices rose above US$100 per barrel last week, with CPC's floating price mechanism showing an average crude oil price of US$115.61 per barrel.

CPC said its stronger New Taiwan dollar exchange rate helped mitigate the impact from higher crude prices to some extent. The company still expects to absorb a loss of NT$6.8 per liter on gasoline sales and NT$8.7 per liter on diesel sales this week, as it aims to help the government ease domestic inflationary pressure.

The Ministry of Economic Affairs has requested that lawmakers support the Cabinet's supplementary budget for state-owned energy companies, which includes a NT$234 billion capital injection and NT$101.43 billion in subsidies for CPC to pare its losses from absorbing part of cost increases in fuel and natural gas prices.