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
Typhoon Usagi yesterday had weakened into a tropical storm, but a land warning issued by the Central Weather Administration (CWA) was still in effect in four areas in southern Taiwan. As of 5pm yesterday, Tropical Storm Usagi was over waters 120km south-southwest of Oluanpi (鵝鑾鼻), the southernmost tip of Taiwan proper, and was moving north at 9kph, CWA data showed. The storm was expected to veer northeast later yesterday. It had maximum sustained winds of 101kph, with gusts of up to 126kph, the data showed. The CWA urged residents of Kaohsiung, Pingtung County, Taitung County and the Hengchun Peninsula (恆春) to remain alert to
ONE LAST TALK: While Xi said that Taiwan was a ‘red line,’ Biden, in what is likely his last meeting with Xi as president, called for an end to China’s military activity around Taiwan China’s military intimidation and economic coercion against Taiwan are the main causes of tensions that are destabilizing peace in the Taiwan Strait, Taipei said yesterday while thanking US President Joe Biden for expressing Washington’s firm stance of maintaining peace and stability in the region. Biden and Chinese President Xi Jinping (習近平) met on Saturday for their third meeting and their first talks in seven months on the sidelines of the APEC forum in Lima, Peru. It was likely Biden’s last meeting as president with Xi. During their conversation, Biden reiterated the US’ opposition to any unilateral change to the “status quo” from either
Taiwan would participate in the 2026 APEC summit to be hosted by China after Beijing promised it would ensure the personal safety of attendees, Taiwanese national security sources said yesterday. The APEC Leaders’ Machu Picchu Declaration announced yesterday said that China would host the APEC summit in 2026. Beijing proposed hosting the summit shortly before this year’s gathering began on Friday, a national security official said, speaking on condition of anonymity. Many APEC members expressed concerns about China hosting the event and said that prior communication over the decision was insufficient, the official said. Taiwan brought up concerns about legal “guidelines” China announced in
MEET AND GREET: The White House, which called the interaction ‘just a handshake,’ did not immediately respond to a request for comment on whether Biden planned to visit Taiwan’s envoy to the APEC summit, Lin Hsin-i (林信義), on Friday invited US President Joe Biden to visit Taiwan. During the APEC Leaders’ Informal Dialogue, Lin, who represented President William Lai (賴清德) at the summit, spoke with Biden and expressed gratitude to the outgoing US president for his contribution to improving bilateral ties between Taipei and Washington over the past four years, the Ministry of Foreign Affairs said. Lin and Biden exchanged views during the conversation, with Lin extending an invitation to Biden to visit Taiwan, it said. Biden is to step down in January next year, when US president-elect Donald Trump is
RSS