State-owned oil supplier CPC Corp., Taiwan, said yesterday that it will keep natural gas prices for domestic and industrial users unchanged in September but will increase them by 5.83 percent for companies that generate electricity.
In a statement, CPC said liquefied natural gas (LNG) prices have been on the rise because of uncertainty over supply amid stalled negotiations between the United States and Iran and a push by European countries to build up LNG inventories before winter.
Although natural gas should increase based on the government’s standardized pricing formula, CPC said it would keep prices for domestic users unchanged in line with government policies to stabilize consumer prices.
Photo courtesy of CPC Corp, Taiwan
For industrial users, CPC said it would absorb the additional costs after taking into account consumer prices, overall economic conditions and the need to ease cost pressures on businesses.
It has absorbed NT$140 billion (US$4.42 billion) in losses on sales to the industrial sector since 2021, it said.
Natural gas prices for the electricity sector, however, will be increased by 5.83 percent to better reflect higher LNG costs, CPC said.
Whether that will translate into higher electricity costs is uncertain, especially given that state-run utility Taiwan Power Co. has also tended to absorb increases in the price of its inputs to keep power costs down for end users.
CPC said it will continue to monitor global LNG prices and review its pricing policy in line with government policy.