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CPC predicts half-year loss of NT$42bn

State-owned CPC Corp, Taiwan (CPC, 台灣中油) estimates its losses will increase to NT$42 billion (US$1.37 billion) by the end of June if the government continues its freeze on fuel prices, a company executive said yesterday.

Despite the continuous rise in the crude oil price, CPC has frozen fuel prices since December, which has resulted in total losses of NT$13 billion by the end of last month.

"CPC estimates that the company loses on average NT$7 billion per month as a result of the price freeze and we expect our losses will go up to NT$42 billion by the end of June," CPC chairman Pan Wenent (潘文炎) said at the legislature's Economics Committee.

Pan said gasoline and diesel fuel prices would rise NT$2.5 and NT$2.8 per liter respectively next month should the government discontinue its price freeze.

Late last year, the government instructed CPC to avoid price hikes if the increase exceeded 12 percent.

Losses at state utility company, Taiwan Power Co (Taipower, 台電), would increase to NT$50 billion by the end of June, compared with losses of NT$31.2 billion last year, Minister of Economic Affairs Steve Chen (陳瑞隆) said yesterday.

Chinese Nationalist Party (KMT) Legislator Lai Shyh-bao (賴士葆) said that CPC and Taipower could lose up to NT$80 billion and NT$100 billion respectively this year, figures that Chen did not dispute.
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