Strait of Hormuz blockade will impact Taiwan's fuel prices, CPI: Minister

Taipei, June 23 (CNA) Economics Minister Kuo Jyh-huei (郭智輝) said Monday that if Iran moves to block the Strait of Hormuz, it would cause crude oil prices to rise and subsequently impact Taiwan's fuel prices and consumer price index (CPI).

Currently, less than 20 percent of Taiwan's crude oil and natural gas import pass through the Strait of Hormuz, Kuo said during a legislative hearing in Taipei.

However, if the strait were to be blocked, ships would be forced to take longer alternative routes, delaying deliveries, and "certainly causing oil prices to rise," he said.

Asked what impact it would have on Taiwan's CPI if crude oil prices surge, Kuo replied that a 10 percent increase in oil prices would raise the CPI by approximately 0.3 percent.

According to foreign media reports, Iran is preparing to close the Strait of Hormuz, a key energy resource shipping route, following the U.S. airstrikes on its nuclear facilities Sunday.

Kuo said that the Ministry of Economic Affairs has been evaluating the impacts of different oil prices, and the state-run oil refiner, CPC Corp., Taiwan, is planning related measures with the possible impact on the CPI in mind.

Meanwhile, the Cabinet said in a statement that Vice Premier Cheng Li-chiun (鄭麗君) has gathered officials from relevant ministries and agencies on the Price Stabilization Task Force to monitor possible fluctuations in oil prices and consumer goods, amid rising geopolitical risks in the Middle East that are expected to push up international crude oil prices.