Drivers and motorcyclists can take a break from rising fuel prices, as the Ministry of Economic Affairs yesterday ordered state-run CPC Corp, Taiwan (CPC) to leave gasoline prices unchanged until an improved floating price mechanism is determined within two weeks.
"We will adjust the pricing mechanism based on advice from different sectors," Minister of Economic Affairs Steve Chen (
The ministry plans to complete the proposal to improve CPC's floating price mechanism by Aug. 14 and submit the new mechanism to the Cabinet for approval, Chen said.
Private refiner Formosa Petrochemical Corp said later that it would match CPC's move to freeze current prices for the next two weeks.
To reflect costs, CPC started last September to adjust gasoline prices based on 80 percent of the change in the price of West Texas Intermediate (WTI) crude oil traded on the New York Mercantile Exchange.
The price per liter now for 98-octane unleaded gasoline is NT$31.3, 95-octane unleaded gasoline is NT$29.8, 92-octane unleaded gasoline is NT$29.1 and premium diesel oil is NT$26.6.
Based on CPC's formula, that would mean a NT$0.4 per liter hike in fuel prices, which would send gasoline prices to another record high.
By putting gasoline prices on hold, CPC would have to absorb about NT$111 million in costs this week, said Liao Tsang-long (
Crude oil prices have surged over the past six weeks, pushing CPC's retail gasoline prices to all-time highs and drawing complaints from both the public and lawmakers.
The ministry had defended CPC's pricing mechanism, saying it was the best measure available. But it has softened its stance after President Chen Shui-bian (
Responding to lawmakers' criticism about the high bonuses awarded to CPC executives and employees, Minister Chen said that the bonuses were determined in accordance with rules governing state-owned enterprises.
Chen also said that the executive bonuses had nothing to do with oil pricing issues.
Meanwhile, to help stabilize commodity prices, CPC would not be required to pay its profits to the treasury next year, Director-General of the Directorate General of Budget, Accounting and Statistics Hsu Chang-yao (
"We estimate that CPC will make a profit of NT$ 6.5 billion [US$198 million] next year, but CPC does not need to submit its surplus to the treasury," Hsu said at a press conference to publicize the government's budget request next year.
Hsu said that CPC, which suffered a loss of NT$17.9 billion last year, can use the surplus earned this year and next to make up for previous losses.
Some Democratic Progressive Party lawmakers said that the Chinese Nationalist Party (KMT), which dominates the legislature, was responsible for the hike in oil prices, as KMT lawmakers had demanded that the CPC set a surplus target of NT$18 billion this year.
Additional reporting by Shih Hsiu-chuan
CALL FOR SUPPORT: President William Lai called on lawmakers across party lines to ensure the livelihood of Taiwanese and that national security is protected President William Lai (賴清德) yesterday called for bipartisan support for Taiwan’s investment in self-defense capabilities at the christening and launch of two coast guard vessels at CSBC Corp, Taiwan’s (台灣國際造船) shipyard in Kaohsiung. The Taipei (台北) is the fourth and final ship of the Chiayi-class offshore patrol vessels, and the Siraya (西拉雅) is the Coast Guard Administration’s (CGA) first-ever ocean patrol vessel, the government said. The Taipei is the fourth and final ship of the Chiayi-class offshore patrol vessels with a displacement of about 4,000 tonnes, Lai said. This ship class was ordered as a result of former president Tsai Ing-wen’s (蔡英文) 2018
‘SECRETS’: While saying China would not attack during his presidency, Donald Trump declined to say how Washington would respond if Beijing were to take military action US President Donald Trump said that China would not take military action against Taiwan while he is president, as the Chinese leaders “know the consequences.” Trump made the statement during an interview on CBS’ 60 Minutes program that aired on Sunday, a few days after his meeting with Chinese President Xi Jinping (習近平) in South Korea. “He [Xi] has openly said, and his people have openly said at meetings, ‘we would never do anything while President Trump is president,’ because they know the consequences,” Trump said in the interview. However, he repeatedly declined to say exactly how Washington would respond in
WARFARE: All sectors of society should recognize, unite, and collectively resist and condemn Beijing’s cross-border suppression, MAC Minister Chiu Chui-cheng said The number of Taiwanese detained because of legal affairs by Chinese authorities has tripled this year, as Beijing intensified its intimidation and division of Taiwanese by combining lawfare and cognitive warfare, the Mainland Affairs Council (MAC) said yesterday. MAC Minister Chiu Chui-cheng (邱垂正) made the statement in response to questions by Democratic Progressive Party (DPP) Legislator Puma Shen (沈柏洋) about the government’s response to counter Chinese public opinion warfare, lawfare and psychological warfare. Shen said he is also being investigated by China for promoting “Taiwanese independence.” He was referring to a report published on Tuesday last week by China’s state-run Xinhua news agency,
‘ADDITIONAL CONDITION’: Taiwan will work with like-minded countries to protect its right to participate in next year’s meeting, the foreign ministry said The US will “continue to press China for security arrangements and protocols that safeguard all participants when attending APEC meetings in China,” a US Department of State spokesperson said yesterday, after Beijing suggested that members must adhere to its “one China principle” to participate. “The United States insists on the full and equal participation of all APEC member economies — including Taiwan — consistent with APEC’s guidelines, rules and established practice, as affirmed by China in its offer to host in 2026,” the unnamed spokesperson said in response to media queries about China putting a “one China” principle condition on Taiwan’s
RSS