Taiwan Allocates $13 Billion for Energy Support Amid Middle East War

Taiwan has allocated $13 billion to support energy costs for state-owned power generator Taipower and refiner CPC, according to Reuters. The move is aimed at offsetting the impact of higher fuel expenses caused by the war in the Middle East.

The allocation will help cushion the effect of increased fuel prices on consumers, who have already been experiencing sharp rises in bills. In contrast, other countries have passed additional costs on to consumers and businesses despite attempts to soften the effect through excise duty cuts and other measures.

Asian economies, including Taiwan, have felt the severe effects of higher oil and gas prices due to their heavy reliance on hydrocarbon supplies from the Middle East. Taiwan's dependence on liquefied natural gas imports is particularly pronounced, with long-term supply deals from Qatar and the United Arab Emirates. Natural gas accounts for over 23% of Taiwan's power generation.