TAIPEI (Taiwan News) — Taiwan’s plastic bag shortages are expected to ease as Formosa Plastics boosts supply and upstream production improves, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said Thursday.

Kung said Formosa Plastics will ship an extra 5,000 tonnes of polyethylene pellets starting Friday, per CNA. He said increased upstream supply is expected to stabilize the market.

Kung added that CPC Corp. has a tanker carrying about 2 million barrels of crude oil in the Persian Gulf. If it arrives within two weeks, it could cover more than half a month of domestic demand.

He made the remarks before a Legislative Yuan committee meeting on the impact of Middle East tensions on petrochemical supply. Rising costs for materials such as plastics, fertilizers, and asphalt have raised concerns over shortages and stockpiling.

Kung said the Cabinet had created a price stabilization task force to monitor the situation. March’s consumer price index rose 1.2% year-on-year, indicating overall price stability.

However, he acknowledged shortages of some petrochemical products, including plastic bags. The ministry has proposed measures such as boosting supply and distribution.

On energy supply, Kung said the crude shipment must pass through the Strait of Hormuz to reach Taiwan. Based on daily demand of about 150,000 barrels, the cargo would help stabilize supply if delivered on schedule.

The ministry said asphalt inventories are sufficient through the end of May, with no immediate concerns. It added that suppliers are seeking additional imports to further secure petrochemical supplies.