TAIPEI (Taiwan News) — CPC Corp., Taiwan, and Formosa Petrochemical Corp. on Sunday announced they would raise wholesale gasoline prices by NT$1.5 (US$0.04) per liter and diesel by NT$1.1 per liter, citing rising international oil prices caused by the ongoing US-Israel war with Iran.

CPC said prices effective at 1 a.m. on Monday would be NT$28.9 per liter for 92 unleaded, NT$30.4 for 95 unleaded, NT$32.4 for 98 unleaded, and NT$28.1 for diesel, per Liberty Times. Formosa Petrochemical announced matching price adjustments on Sunday afternoon.

CPC said the expansion of the war is affecting crude exports from Persian Gulf countries and that some oil-producing nations are reducing output, driving international oil prices sharply higher. Under Taiwan’s floating fuel price mechanism, gasoline and diesel would normally rise by NT$5.4 and NT$4.8 per liter for the week.

To ease the impact on domestic prices, the government activated stabilization measures. It also maintained temporary reductions in excise taxes on petroleum products to keep the overall domestic price adjustment at around 5%.

CPC will absorb NT$3.9 for gasoline and NT$3.7 for diesel to balance market mechanisms while limiting the impact on daily life and industrial operations. The state-run firm said continuation of the emergency absorption will depend on the war’s developments, but the goal is to prevent oil price shocks from expanding and affecting the public.