Ministry says stockpiles of supplies are sufficient

In the wake of US-led air strikes in Afghanistan, government officials said yesterday that stockpiles of energy, commodities and industrial raw materials were ample to handle possible disruptions of imports.

Nearly all of Taiwan's energy resources are imported, so possible delays caused by the fighting pose a serious threat to the economy.

But the Ministry of Economic Affairs said yesterday that "various contingent measures" have already been made and it is ready to cope with any possible disruption in supply resulting from the US-led attacks.

If the shipment of exported goods is affected by the war -- including an increase in insurance costs -- the government "should help companies obtain alternative measures" to facilitate exports, the ministry said.

The government last month agreed to provide 30-day guarantees for domestic airlines for additional insurance to cover damage caused by wars or hijacking.

If the conflict escalates, the government will also increase inventories of commodities and related products, the ministry said.

The ministry also said that state-owned Chinese Petroleum Corp (中油) has suspended gasoline and diesel fuel exports in the wake of the strikes and will consider buying crude oil from outside the Middle East, Taiwan's largest source of oil.

Chinese Petroleum may store oil in oil tankers on shore if necessary, the ministry said.

According to the ministry, the country's major oil suppliers, including Chinese Petroleum and Formosa Petrochemical Oil Corp (台塑石油), have a total of 134 days worth of oil reserves. The state-run company has contacted suppliers in the North Sea, Indonesia, Malaysia and Australia if supply problems were to suddenly emerge.

The ministry also said water and electricity prices won't be raised before end of the year.

Taiwan has 200,000 tonnes of wheat stockpiled -- enough for two months -- and stockpiles of corn and soybeans sufficient for one month.

The ministry believes that there shouldn't be any shortage of major industrial materials, including electronic components, steel and petrochemicals, saying that Taiwan has supplies of these goods to last for around a month.

But the ministry said it will closely monitor the conflict in Afghanistan, adding that the government will provide the necessary assistance if exporters were to face transportation and insurance problems.