Taiwan Freezes Fuel Prices and Earmarks 71.1 Billion New Taiwan Dollars for Taipower
Taiwan’s state refiner CPC Corporation kept pump prices unchanged for 5 to 11 October, its third straight weekly freeze after a rise on 14 September, with 92 unleaded at 31.2 New Taiwan dollars a litre and super diesel at 29.9, as a commodity tax cut and the refiner together absorb 10.1 a litre on gasoline and 10.3 on diesel. Taiwan Power Company said the 2026 supplementary budget bill, which awaits legislative approval, allocates it 71.1 billion New Taiwan dollars and that it has no plan to change electricity rates. The 10.1 a litre support on gasoline is equivalent to about 32 percent of the 92 unleaded pump price, and the 10.3 on diesel to about 34 percent of the diesel price, on our calculation.
Pump prices frozen to 11 October
Taiwan pump prices against Japan and South Korea
| Product | Taiwan | Japan | South Korea |
|---|---|---|---|
| 92 unleaded | 31.2 | 34.4 | 43.6 |
| 95 unleaded | 32.7 | not sold | 52.8 |
| 98 unleaded | 34.7 | 36.6 | not sold |
| Super diesel | 29.9 | 32.3 | 43.3 |
New Taiwan dollars a litre. Taiwan prices apply from 16:00 GMT on 4 October to 16:00 GMT on 11 October 2026, midnight to midnight Taiwan time; Japan and South Korea prices as published by CPC Corporation, including those governments’ subsidies. Singapore’s 95 unleaded is listed at 88.2.
Taiwan’s 92 unleaded is 9.3 percent cheaper than Japan’s and 28.4 percent cheaper than South Korea’s, and its diesel is 7.4 percent and 30.9 percent cheaper respectively, on our calculation.
Who absorbs what, per litre
| Product | Tax cut | Refiner | Total |
|---|---|---|---|
| Gasoline | 3.7 | 6.4 | 10.1 |
| Diesel | 2.1 | 8.2 | 10.3 |
New Taiwan dollars a litre, 5 to 11 October 2026.
The refiner carries 63.4 percent of the gasoline absorption and 79.6 percent of the diesel absorption, on our calculation. Its stabilisation measures absorbed about 25.34 billion New Taiwan dollars on gasoline and diesel from 28 February to 4 October, an average of about 116 million New Taiwan dollars a day over 219 days, on our calculation. Its benchmark price, weighted 70 percent Dubai and 30 percent Brent, averaged 112.54 US dollars a barrel in the week to 2 October, at an exchange rate of 31.850 New Taiwan dollars to the US dollar.
The utility’s gas bill and the subsidy
The utility said fuel prices rose more than 60 percent between March and August, and that by the end of August its natural gas fuel costs were more than 70 billion New Taiwan dollars higher than before the regional war began. Its gas price rose to 20.4 New Taiwan dollars per cubic metre from 12.6, an increase of 61.9 percent, and the September price for power generation of 21.6 is 71.4 percent above that starting level, on our calculation. If the September price lasts to year end, the utility estimates its full year gas cost will exceed the pre-war level by more than 150 billion New Taiwan dollars, so the 71.1 billion allocation would cover less than half of that, at most about 47 percent, on our calculation.
The Electricity Price Review Committee decided on 18 September to keep current rates from 1 October while a budget subsidy was sought. Residential and industrial tariffs stand at 2.89 and 4.27 New Taiwan dollars per kilowatt hour, against 4.02 and 4.95 in South Korea and 7.48 and 5.52 in Japan, which puts Taiwan’s residential rate 28.1 percent below South Korea’s and 61.4 percent below Japan’s, on our calculation.
Why it matters: Taiwan is absorbing the rise in imported energy costs through a tax cut and the balance sheets of its state refiner and power utility, with the supplementary budget, once passed, covering part of the utility’s bill, which keeps pump prices and power tariffs below those of Japan and South Korea and shields households and industry from the direct impact.
Outlook: the refiner sets prices for the week from 12 October in its next announcement, and the 71.1 billion allocation awaits passage of the supplementary budget by the legislature.
Sources: CPC Corporation Taiwan, Taiwan Power Company, The Edge.
