TAIPEI (Taiwan News) — CPC Corp. has absorbed NT$3.3 billion (US$103.49 million) in fuel costs over the past two weeks to stabilize prices, the Ministry of Economic Affairs said Wednesday.

MOEA Vice Minister Lai Chien-hsin (賴建信) said liquefied petroleum gas (LPG) imports are not routed through the Strait of Hormuz, helping ensure a stable supply, per CNA.

The government has moved to cushion consumers from global energy volatility triggered by the Middle East conflict. Measures include keeping domestic fuel prices among the lowest in the region and requiring CPC to absorb at least 60% of cost increases.

Authorities have also expanded commodity tax cuts on gasoline and diesel to 50%. This lowers gasoline tax to NT$3.42 per liter and diesel tax to NT$1.99 per liter.

During a legislative session, KMT Legislator Yeh Yuan-chih (葉元之) questioned CPC’s financial burden, noting the company has been absorbing more than NT$10 per liter in costs, per Liberty Times.

Lai said CPC will continue absorbing 60% of price increases while maintaining competitive pricing. The ministry will also support the company’s financing needs as oil prices remain volatile.

He added that LPG operates in a competitive domestic market, with suppliers including CPC and Formosa Plastics. The Energy Administration is monitoring production and pricing, and will act against hoarding or supply disruptions if necessary.