Taiwan's CPC to freeze gasoline, diesel prices amid oil market volatility

Amid escalating geopolitical tensions in the Middle East and fluctuating international oil prices, CPC Corporation announced on Friday that domestic gasoline and diesel prices will be frozen starting Monday, August 3rd. This decision aims to mitigate the impact of rising costs on consumers and stabilize prices.

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The Middle East geopolitical conflict is heating up, and international oil prices are fluctuating at high levels.

The state-owned oil company has already absorbed a significant portion of the increased costs, totaling about NT$16.27 billion for gasoline and diesel combined since the conflict erupted. This absorption is achieved through government-implemented measures, including a reduction in commodity tax, and CPC's own price stabilization mechanisms designed to maintain prices at levels competitive within the region.

Despite the global price volatility, Taiwan's fuel prices remain notably lower than in neighboring countries. For instance, 95 unleaded gasoline is priced at NT$32 per liter, significantly less than in South Korea (NT$50.4), Singapore (NT$84.6), and Japan (NT$35.9). Similarly, diesel prices in Taiwan are substantially lower than in Hong Kong.

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To care for domestic livelihoods and stabilize prices, after overall assessment, the government's expanded commodity tax reduction absorbs NT$3.7 and NT$2.1 for gasoline and diesel respectively.

CPC explained that its price stabilization efforts involve absorbing NT$4.6 per liter for gasoline and NT$4.2 per liter for diesel. These measures, combined with a government tax reduction, aim to keep domestic fuel costs manageable for the public and businesses.

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Taiwan continues to maintain the lowest prices among neighboring countries.