TAIPEI (Taiwan News) — The Cabinet on Monday addressed concerns over the impact of rising global oil prices linked to tensions involving Iran, saying Taiwan’s petrochemical supply remains stable and sufficient to meet domestic demand, per CNA.
At a press conference, Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) said increased production at CPC Corp.’s Fourth Naphtha Cracking Plant in April will ensure an ample supply of polyethylene used in plastic bags, medical supplies, and agricultural packaging. Ho said the additional output eliminates the need for panic buying, stressing that supply remains stable.
National Development Council Chair Yeh Chun-hsien (葉俊顯) said the facility boosted ethylene production by 19,000 tonnes in April, with 5,500 tonnes used to produce polyethylene. The remaining 13,500 tonnes have not yet been allocated and can be used to meet additional demand if needed.
Yeh said Taiwan’s oil and gas inventories currently exceed legal reserve requirements. CPC Corp. and Formosa Plastics Group have increased crude and light oil purchases from April to July and adjusted shipping routes through the Red Sea.
Natural gas shipments for April and May have been secured, while 11 of the 15 vessels needed for June have already been procured, ensuring a stable supply, he said. Fuel prices continue to follow a price stabilization mechanism aimed at keeping domestic gasoline and diesel prices lower than those in neighboring Asian countries.
CPC has absorbed recent increases in international oil prices, while residential natural gas, bottled gas prices, and electricity rates will remain unchanged in April.
Yeh said that for other petrochemical products, including medical materials, asphalt, and agricultural plastics, the ministry has established a task force to help companies secure supply if shortages arise. Authorities will also regularly disclose production, sales, and supply-demand data to improve market transparency.
Chiou Chyou-Huey (鄒宇新), director-general of the Industrial Development Agency, said supplies in Taipei are currently tight, with some stores experiencing shortages. Emergency coordination with suppliers has been arranged to stabilize availability.
CPC said it has absorbed rising international oil costs for several consecutive weeks, totaling more than NT$9 billion (US$281 million). Yeh said options including project financing, subsidies, and capital increases are under discussion, though no final decision has been made.
