Taiwan raises gasoline and diesel prices amid Middle East conflict, government absorbs costs, global crude prices surge sharply.
Taiwanese fuel suppliers CPC Corp and Formosa Petrochemical Corp have announced a second consecutive weekly increase in gasoline and diesel prices, attributing the rise to escalating tensions in the Middle East. The conflict in the region has significantly disrupted tanker traffic through the strategic Strait of Hormuz and prompted certain oil-producing nations to reduce their output, driving up global crude oil prices.
Premier Cho Jung-tai addressed the situation, urging the public to remain calm and cooperate with government measures aimed at mitigating the impact of rising fuel costs. According to his statement, the government plans to absorb roughly 60 percent of the price hikes to prevent domestic fuel prices from escalating sharply. Cho encouraged citizens and businesses to work together during this challenging period, emphasizing a collective effort to stabilize the economy and protect households from sudden energy cost shocks.
Effective March 9, 2026, CPC and Formosa Petrochemical will implement price increases across gasoline grades and diesel. Specifically, the price of 92-octane unleaded gasoline will rise by NT$1.5 per liter to NT$28.9, while 95-octane gasoline will reach NT$30.4 and 98-octane gasoline NT$32.4 per liter at both CPC and Formosa outlets. Premium diesel will see an increase of NT$1.1 per liter, bringing prices to NT$28.1 at CPC stations and NT$27.9 at Formosa locations.
CPC explained that its weekly pricing adjustments are based on a weighted formula incorporating 70 percent Dubai crude and 30 percent Brent crude. According to this model, the recent surge in international crude prices due to Middle East supply disruptions would have warranted a steeper increase of NT$5.4 per liter for gasoline and NT$4.8 per liter for diesel. To cushion domestic consumers, the company will absorb part of the costs, capping the weekly price adjustments at roughly 5 percent, in line with government policies aimed at price stabilization and ensuring local fuel costs remain lower than those in neighboring countries.
Formosa Petrochemical, in turn, set its prices closely in line with CPC’s, taking into account global oil market trends, regional price conditions, fluctuations in the New Taiwan dollar, and competitive pressures in the domestic market.
These announcements come in the wake of a sharp rally in global crude prices last week, marking the third consecutive weekly increase and recording the largest gains over the past four decades. Brent crude oil futures, the global benchmark, surged 27.2 percent, closing at US$92.69 per barrel on the Intercontinental Exchange in London. Meanwhile, West Texas Intermediate (WTI) crude, the U.S. benchmark, jumped 35.63 percent to US$90.9 per barrel on the New York Mercantile Exchange, underscoring growing supply concerns and heightened market volatility.
With fuel prices set to rise, Taiwanese consumers and businesses are bracing for higher transportation and production costs, while government interventions aim to shield households from the full impact of soaring global crude prices.
