Government never to profit at consumers' expense: premier

State-owned oil refiner CPC Corp., Taiwan, whose gasoline prices are determined by a formula based on global oil prices, was recently found to have overcharged motorists for air pollution fees and petroleum management funds over the past three years, and the premier's comments were his first on the controversy.

Responding to press inquiries while visiting a wholesale food market in Taipei City early Wednesday morning, Wu said he has directed Economic Affairs Minister Shih Yen-shiang and relevant government agencies to honestly and carefully review CPC's gasoline pricing scheme so that it won't profit at motorists' expense.

According to Wu, the MOEA already decided more than two weeks ago to deal with the gasoline pricing issue based on the principle of "not gaining any undue penny at consumers' expense."

CPC announced Tuesday it would again cut gasoline and diesel prices by NT$0.4 (US$0.0125) per liter, effective Wednesday. It was the company's second price cut in two days.

The decision, which followed a NT$0.1 per liter cut announced Monday, was reportedly reached Tuesday afternoon at a closed-door meeting chaired by Wu at the Executive Yuan.

The new price cut followed public criticism after a newspaper report said CPC and its rival -- privately run Formosa Petrochemical Corp. -- overcharged motorists while collecting revenues for air pollution fees payable to the Environmental Protection Administration (EPA).

According to Wednesday's CPC press statement, the company grossed an extra NT$5.436 billion in air pollution fees and petroleum management funds intended for the EPA since it adopted a floating gasoline pricing scheme in September 2006.

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