TAIPEI (Taiwan News) — CPC Corp. announced Saturday that starting on Monday, gasoline and diesel prices would rise by NT$1.8 (US$0.05) and NT$1.4 per liter.

The state-owned oil supplier said that after the adjustment, retail prices would be NT$30.7, NT$32.2, and NT$34.2 per liter for 92-, 95-, and 98-octane unleaded gasoline, and NT$29.5 per liter for premium diesel, per CNA. International oil prices surged last week after Iran expanded attacks on energy facilities in neighboring Persian Gulf countries and continued blocking the Strait of Hormuz, driving up fuel prices in nearby Asian markets.

Under Taiwan’s floating fuel price mechanism, gasoline and diesel prices should have risen by NT$15 and NT$16.9 per liter. To ease the impact of sharp global oil price increases, CPC continues seeking to maintain the lowest price among neighboring Asian countries, subsidizing NT$7.9 per liter for gasoline and NT$11.5 for diesel.

In addition, to stabilize domestic prices and considering CPC’s financial situation, the government raised the price mitigation ratio from 60% to 75% this week. This raised subsidies to NT$5.3 per liter for gasoline and NT$4.0 for diesel, bringing the total subsidies to NT$13.2 and NT$15.5 per liter.

CPC said that from the outbreak of the Iran war on Feb. 28 through March 22, it absorbed an estimated NT$3.426 billion in gasoline and diesel costs under the floating price and price mitigation mechanisms. The move aims to reduce the impact on daily life and industrial operations while maintaining domestic price stability.