Latest data released on May 7 by Taiwan's statistical agency shows the island's Consumer Price Index (CPI) increased by 1.74% year-on-year in April, with fuel costs rising sharply by 13.6%. Among the seven major categories of CPI, transportation and communication expenses recorded the highest growth at 2.66%, primarily driven by elevated international oil prices. Specific increases included train tickets (9.21%), airfares (5.28%), and vehicle parts and maintenance fees (4.63%). A 2.83% decline in vehicle costs due to tax reductions on new automobile purchases partially offset the overall rise.
Prolonged Middle East conflicts continue to impact Taiwan's energy supply stability. Reports indicate over 96% of Taiwan's energy is imported, with approximately 60% of petroleum and one-third of natural gas passing through the Strait of Hormuz. Analysts warn that energy supply disruptions could lead to heavy utility bills and potential rationing crises.
Taiwan recently procured oil and gas at premium prices from international markets. Data reveals that between February 28 and May 3, state-owned CPC Corporation spent approximately NT$13.2 billion through floating oil price mechanisms to cushion consumers and industries from rapid price hikes. Premier Cho Jung-tai affirmed that electricity rates and essential goods prices remain unchanged, with CPC and Taipower absorbing additional costs. However, public skepticism persists regarding the ultimate burden of high subsidies on citizens.
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