Taipei: Premier Cho Jung-tai announced that the government has directed Taiwan’s two largest petrochemical companies to ramp up production as the ongoing conflict in the Middle East continues to affect global oil supplies, leading to a surge in plastic bag prices.

According to Focus Taiwan, Yeedon Enterprise Co., which owns the prominent rice brand San-Hao Rice, reported a significant increase in the cost of 3-liter plastic bags. Prices have risen from NT$4 (US$0.12) to between NT$8 and NT$10 due to a persistent material shortage linked to the conflict in the Middle East.

During a legislative session, Kuomintang Legislator Wang Yu-min questioned Premier Cho about the government’s response to the ethylene shortage, a key material for plastic bag production. Cho stated that the government has instructed CPC Corp., Taiwan, to address the current shortfall in ethylene production.

The government plans to supply CPC Corp. with the necessary raw materials in April, allowing the company to increase its monthly ethylene production from 60,000 metric tons to between 79,000 and 80,000 tons. Additionally, Cho mentioned that Formosa Petrochemical Corp. (FPCC) has been asked to increase its production, though it will not match CPC Corp.’s output increase, with the exact figures yet to be determined.

Cho also noted that the supply of petroleum and liquefied natural gas is expected to remain “almost stable” through June. In response, Wang suggested that the Cabinet form a cross-agency task force to mitigate the economic impact of the conflict and protect the semiconductor industry and essential goods prices from being adversely affected.