CPC absorbs NT$3.3 billion in fuel costs amid Middle East tensions: MOEA

Taipei, March 18 (CNA) Taiwan's state-run oil supplier CPC Corp., Taiwan has absorbed about NT$3.3 billion (US$100 million) in fuel costs over the past two weeks to help stabilize domestic prices amid Middle East tensions, a Ministry of Economic Affairs (MOEA) official said Wednesday.

Vice Minister of Economic Affairs Lai Chien-hsin (賴建信) said the government has prioritized price stability as global energy supplies face disruptions from the conflict.

Under a price-stabilization mechanism, CPC absorbs at least 60 percent of cost increases while keeping domestic fuel prices among the lowest in neighboring markets, he said during a legislative session.

According to the MOEA, the government has also expanded fuel tax cuts to 50 percent, lowering gasoline and diesel taxes to NT$3.415 and NT$1.995 per liter, respectively.

• Fuel prices to remain unchanged despite Middle East tensions: CPC

Lai said the MOEA will continue to monitor developments closely and assist CPC with financing arrangements if needed, as global oil prices remain volatile.

On liquefied petroleum gas (LPG), Lai said Taiwan's imports of bottled gas have not been impacted by the blockade of the Strait of Hormuz, with supplies remaining stable.

LPG is sold on the free market, with suppliers including CPC and Formosa Petrochemical Corp. The Energy Administration maintains regular communication with industry players to help stabilize prices and monitors supply and demand to prevent hoarding or distribution disruptions, he added.

Separately, Agriculture Minister Chen Junne‑jih (陳駿季) said Taiwan currently has sufficient fertilizer raw material inventories to last between six and eight months, including supplies already in transit.

Taiwan sources fertilizer materials from multiple regions, including Southeast Asia and Australia, reducing reliance on the Middle East.

Nitrogen fertilizer supplies are expected to last until August, potash until October, and phosphate rock until December, Chen added.

However, higher shipping costs could push up fertilizer prices. If that happens, the government will absorb the price difference to ease the burden on farmers, he said.