Taipei: Owned oil supplier CPC Corp., Taiwan, will keep natural gas prices for domestic and industrial users unchanged in September but will increase them by 5.83 percent for companies that generate electricity, it said Monday.

According to Focus Taiwan, CPC stated that liquefied natural gas (LNG) prices have been on the rise due to uncertainty over supply amid stalled negotiations between the United States and Iran and a push by European countries to build up LNG inventories before winter. Despite the rising prices, CPC has decided to maintain the current rates for domestic users as part of government policies to stabilize consumer prices.

For industrial users, CPC mentioned that it would absorb the additional costs, taking into consideration consumer prices, overall economic conditions, and the need to alleviate cost pressures on businesses. Since 2021, CPC has absorbed NT$140 billion (US$4.42 billion) in losses on sales to the industrial sector.

In contrast, natural gas prices for the electricity sector will see a 5.83 percent increase to better reflect the higher costs of LNG. However, it remains uncertain whether this increase will lead to higher electricity costs, as state-run utility Taiwan Power Co. has historically absorbed input price hikes to maintain stable power costs for end users.

CPC emphasized its commitment to monitoring global LNG prices and reviewing its pricing policy to align with government directives.