price hikes effective at midnight today with a package of accompanying measures to help cushion the impact from the massive raise in fuel costs. The price of octane 92 unleaded gasoline went up by NT$3.9 or to NT$33.9 per liter.
The same range of an upward price adjustment was adopted on 95 unleaded and 98 unleaded gasoline, pushing their prices up to NT$34.6 and NT$36.1 per liter, respectively.
At the same time, the price of diesel was hiked by NT$4.4 to NT$31.9 per liter, while the price of liquefied petroleum gas was increased by NT$3.9 per kilogram and that of natural gas boosted by NT$3.85 per cubic meter.
The price of industrial fuel oil went up by NT$3,500 per kiloliter to NT$18,208 from NT$14,708. +
The price hikes came in the first week that the Kuomintang-led government took over from the previous Democratic Progressive Party (DPP) administration, which had refused to raise prices for fear of losing ballots from voters in the legislative and presidential elections since November last year.
Despite skyrocketing global oil prices and refueled inflationary pressures, Liu said the new government had to make the painful decision to forestall possible negative economic and financial repercussions.
Liu said he had to make certain unpopular but crucial decisions rather than sit on his hands and let the overall economic environment continue to deteriorate.
But Liu also took supplementary measures that would help consumers weather the impact of the steep price hikes.
The range of price hikes is lower than originally expected.
Liu said the fuel costs in Taiwan will remain among the lowest in the Asia-Pacific region.
Crude prices had surged 43 percent from October 2007 until May 20 this year. The current price has more than doubled from the same period last year.
To help alleviate the people's financial burden, Liu explained that the hikes were implemented based on the principle of making the public absorb only 60 percent of the additional costs.
The government will absorb 20 percent of the increased costs with the state-run petroleum company CPC Corp., Taiwan absorbing the remaining 20 percent.
Lifting the price freeze came earlier than the previously scheduled time of early June.
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