The government will prioritize price stability when considering electricity and fuel price adjustments amid volatile global energy markets, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday, ahead of a meeting of the electricity price review committee later this month.
Global prices of crude oil have fluctuated sharply in the past few days, briefly rising to about US$120 per barrel before dropping to about US$80 and later rebounding to above US$90, Kung said.
As of Wednesday, benchmark spot crude oil prices stood at about US$112.17 per barrel, while Brent crude oil traded at about US$93.07 per barrel, ministry data showed.
Photo: Tu Chien-jung, Taipei Times
Domestic fuel prices would continue to follow the standard adjustment mechanism and state-run CPC Corp, Taiwan (中油) would absorb at least 60 percent of oil price increases to help stabilize consumer prices, Kung said.
Anticipated fuel price adjustments next week are unlikely to exceed this week’s if crude prices remain at about the current level of US$90 per barrel, he said.
Taiwan’s oil reserves remain well above the legal requirement of 90 days, with 30 days held by the government and 60 days held by private companies, giving the country greater flexibility in adjusting supply if necessary, he said.
Oil supply sources are also diversified across multiple countries, Russia excluded, meaning that even if some shipments are affected, supplies can be rerouted from other regions, he said.
Regarding liquefied natural gas (LNG) supply, transportation arrangements for most of the 22 shipments bound for Taiwan that are to pass through the Strait of Hormuz this month or next month have already been completed, Kung said.
Some vessels passed through the strait earlier this month, while the remaining shipments are being secured, he said.
In terms of supply sources, Taiwan’s LNG imports mainly come from Australia and the US, along with some Asian suppliers, he said.
The government is continuing to diversify supply sources to reduce risks from relying on any single region and has begun planning to secure extra LNG supplies beyond May, following Premier Cho Jung-tai’s (卓榮泰) instructions, Kung said.
Recent LNG procurement has proceeded more smoothly than before, as major producers such as Australia and the US have recognized rising demand in Asia and provided alternative shipments for delivery, he said.
For domestic LNG prices, CPC would consider all factors toward the end of this month before making a decision on next month’s prices, he added.
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