The items covered are gasoline, jet fuel and kerosene, which are subject to a 10 percent duty, as well as other diesel fuel — referring to that intended for testing purposes — which is subject to a 5 percent duty. Regular diesel is already duty-free.

According to Ministry of Finance officials, Taiwan has imposed higher import duties on fuel products than South Korea and Singapore, and removing the tariff will help provide an incentive for businesses to enter the domestic fuel market, which will be favorable to stabilizing domestic fuel prices.

The Cabinet first proposed to revise the Customs Import Tariff as part of its efforts to ease inflationary pressure in August when global oil and commodity prices remained at high levels. But oil prices have been plummeting in recent months, meaning the revisions are not likely to have a significant impact on the local market.