Taipower Faces $3.76B Fuel Cost Hike Amid Middle East Conflict

Taipower, Taiwan's state-run utility company, warned of increased fuel costs due to higher natural gas prices caused by the Middle East conflict.

The estimated cost increase for Taipower this year is over NT$120 billion (US$3.76 billion), with every NT$1 increase in natural gas per cubic meter adding about NT$25 billion to the company's annual fuel costs, according to data from Taipower.

Taipower vice president Tsai Chih-meng said that if natural gas prices remain at this month's level through the end of the year, the company's fuel costs could rise by an additional NT$15 billion a month, exceeding the estimated increase of over NT$120 billion.