The Ministry of Economic Affairs (MOEA) said in a report Monday that the price of liquefied petroleum gas (LPG) sold in cylinders for domestic use will not increase before the end of April.

In the report submitted to the Legislature, the MOEA said the prices of various commodities in Taiwan have soared recently, due to inflation and higher crude oil and gas prices in the global supply chain, amid the Russia-Ukraine war.

In an effort to ease the financial burden on households, however, the Taiwan government will not permit any increase in the price of domestic bottled gas, at least for the next six weeks, the ministry said.

According to the MOEA’s Bureau of Energy, the average retail price of a 20-kilogram cylinder of LPG was NT$654 (US$22.97), as of February.

Meanwhile, Taiwan’s supply of liquefied natural gas (LNG) is about 71 percent covered by mid to long-term contracts mainly with Australia and Qatar, along with 12 other countries, the MOEA said in its report.

Although Taiwan’s trade with Ukraine and Russia is not that significant, the latter is the third largest supplier of LNG to Taiwan, accounting for 9.7 percent of the total, the ministry said.

Taiwan’s LNG contract with Russia is about to expire this month, the MOEA said, adding that it has already identified alternative supply sources such as the United States.

Currently, Taiwan has an LNG safety stock of 10.2 days’ supply, the ministry said.

In its report, the MOEA said it will closely monitor the market dynamics and hold discussions with industry players to ensure that domestic production is not affected by unstable commodity prices in the global supply chain, as the Russia-Ukraine conflict seems likely to continue.

At a legislative hearing on Monday, Lee Shun-chin (???), president and acting chairman of state-run fuel supplier CPC Corp., Taiwan, said that if crude oil prices climb to US$150 per barrel, as predicted, the company will suffer about NT$500 billion in losses.

Oil prices are likely to reach US$150-US$200 per barrel later this year, as Russia’s invasion of Ukraine continues to affect international commodity markets, several foreign institutions have forecast.

The state-run CPC refines around 140 million barrels of oil per year, with 80 percent of the costs managed through the government’s price stabilization mechanism, while the company absorbs the remaining 20 percent, Lee said.

For every US$1 increase per barrel in international oil prices, CPC would have to spend US$140 million on refinery, he said.

Source: Focus Taiwan News Channel