The government has asked Taiwan's oil suppliers to reduce their reliance on crude imports from the Middle East ahead of expected US reprisals against terrorists, officials said yesterday.
The government also demanded the two suppliers, state-run Chinese Petroleum Corp (中油) and the private Formosa Petrochemical Corp (
Taiwan's oil reserves now are sufficient for 70 days of domestic consumption, 10 days more than the government's required minimum.
"Still, we have to prepare for the worst, whatever the results of the imminent US reprisal strikes," Wang Yu-ming, spokesman for the Energy Commission, an energy policy decision-making body, said.
Analysts warned the already battered Taiwan economy could be damaged further if US retaliatory strikes, possibly targeting Afghanistan, disrupted oil shipping in the Middle East.
"Given the persistent tensions following the terrorist strikes on the US, we have asked the two oil firms to try to buy crude from the other areas than the Middle East," Wang said.
"Increasing imports from the spot markets is also another option being weighed," he said.
Taiwan imports about 200 million barrels of crude a year, about half of which comes from Saudi Arabia, Kuwait and the United Arab Emirates. The Chinese Petroleum, which dominates about 80 percent of the domestic market, confirmed it has acted on the government instructions.
"Contacts have been made with the oil exporting countries outside that region to see if they can step up supplies," a Chinese Petroleum spokesman said.
Wang said if the US retaliatory strikes lead to a serious shortage of oil, rationing could be introduced.
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