TAIPEI (Taiwan News) — Taiwan is expected to halve its gasoline exports this year, with its two major refiners cutting supplies amid the low demand.

Last week, Taiwan’s Formosa Petrochemical Corporation (FPC) said the company’s monthly volume would be slashed from the 200,000 tons last year to 100,000 tons, according to Reuters. Despite a pickup in domestic demand in June, FPC is scaling back supplies due to sluggish overseas demand, company spokesperson KY Lin said.

Taiwan’s state-owned oil refiner CPC Corporation is also reducing its gasoline exports, from three shipments a month last year to one monthly shipment, Reuters reported, citing industry sources.

The reduction in volumes will assist in keeping excess supply down, as Taiwan is the fourth-largest gasoline exporter in Asia. The island country follows China, India, and South Korea, the report said.

Formosa Plastics Group (FPG), the conglomerate that owns FPC, on Tuesday (July 7) announced plans to go ahead with a 1 percent pay increase for rank-and-file non-management employees. This is despite the pressure of lost revenue stemming from the coronavirus pandemic.

U.S. crude oil prices tanked to minus US$37 in April, the first time in history the prices had dipped into the negative, due to dwindling demand. The resurgence of COVID-19 outbreaks in many states of the U.S., the largest market for motor fuel, has cast a shadow over the recovery in demand for gasoline.