August bottled gas prices frozen; CPC absorbs losses with 'selling one cylinder, losing on another'

Taiwan's state-run CPC Corporation has decided to freeze the price of bottled liquefied petroleum gas (LPG) for August, a move aimed at stabilizing consumer prices amidst rising global energy costs. The decision means that prices for household bottled gas, industrial propane and butane, and vehicle LPG will not be adjusted starting August 2.

CPC will absorb an increase of 3.4 New Taiwan dollars per kilogram for LPG. This comes as geopolitical conflicts in the Middle East escalate, driving up the cost of imported fuel sources. The company's decision to maintain current prices is in line with the government's policy to stabilize the market, aiming to alleviate the burden on households and businesses, particularly the catering industry, and to maintain overall price stability.

This price freeze comes at a significant financial cost to CPC. The company has already absorbed previous price increases, accumulating a total absorption amount of 21.45 NT dollars per kilogram. This figure exceeds the current post-tax retail price of 20.01 NT dollars per kilogram, meaning CPC is effectively losing money on every cylinder sold. The total estimated absorption for LPG products by CPC from January to July this year has surpassed 9 billion NT dollars.