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Electricity prices won't drop despite crude oil price falls: official

Electricity prices won't drop despite crude oil price falls: official

Gas prices in Taiwan could fall in November due to drops in global crude oil prices over the past two months, but there is still no room for a lowering of electricity prices, the minister of economic affairs said Monday.
Yiin Chii-ming said that the price of liquefied petroleum gas (LPG) was adjusted lower by NT$0.5 per kg in September and again in October. The price of household-used LPG currently stands at NT$27.72 per kg and that of industry-used LPG is at NT$30.8 per kg.
Since LPG prices were mainly influenced by the international LPG market supply and demand, Yiin said he believes there is space for prices to be reduced in the near future.
However, the same situation will not happen on power prices, Yiin said, because when they were hiked in July and October, they only came to half of the suggested increase level.
Besides, he explained, international coal prices continue to rise, which gave the state-run Taiwan Power Company (Taipower) - dominated by coal-fired power generation - no choice but to maintain the current price levels.
Yiin said the international coal price was at NT$2,280 per ton on July 1, and surged to NT$3,938 in October. Taipower assessed it will still suffer from an operational deficit of NT$100 billion this year, despite the power prices being hiked.
The power company is expected to sustain a further deficit of NT$150 billion next year if power prices are not adjusted further by then to reflect actual cost, Yiin said.
Yiin made the remarks in replying to a demand by lawmakers at the Legislative Yuan for immediate drops in power and gas prices.
Some lawmakers complained at the legislative Economics Committee meeting earlier in the day that the prices of commodities in the country failed to reflect the fact that prices of crude oil and staple raw materials have been falling in the international market over the past few weeks.


Updated : 2021-04-12 10:12 GMT+08:00