LNP price to be cut if crude oil declines

CPC officials said that the drop in international crude oil price has yet to be reflected in import price for LNG, which, as a result, remains higher than domestic LNG sales price.

This, coupled with LNG processing and pipe transmission management costs, has made the CPC suffer serious operating loss from LNP sales.

Accordingly, time is not ripe for a price cut on LNG for the moment, but CPC will slash its LNG price early next year should international LNG price continues its downward movement trend.

Just a few days ago, the CPC reduced its domestic sales price for liquefied petroleum gas (LPG) by NT$5 per kilogram, with per 20-kg tank of LPG enjoy a price drop of NT$100. It also cut domestic sales price for fuel oil by NT$3,000 per kiloliter.

CPC officials said that the cuts on LPG and fuel oil prices were made based on the monthly contract price announced by the Saudi Arabic’s state-run oil price.

On another front, Economics Minister Yiin Chii-ming said earlier that there was little room for cuts in electricity prices because the previous price hikes in July and October only covered half the amount needed to cover the state-run Taiwan Power Company’s losses.

Lawmakers, however, yesterday ruled that the Taipower should cut electricity rates next quarter if the weighted price of thermal coal declines.

The economics committee of the Legislative Yuan also requested the government should announce electricity price hike one month before the hike takes effect.

Meanwhile, Hu Tser-nan, president of Taiwan Water Works said his company will not raise water price through the end of this year, as it still managed to post earnings of NT$350 million during the first nine months of the year.

But if the company will have to spend a lot on installation of new water pipes, the firm will not rule out raising water price next year, Hu said.

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