Taiwan budget adds subsidies for CPC and Taipower to hold gas and power prices
Taiwan's cabinet approved a big extra budget that pays state energy firms to keep fuel, cooking gas, and electricity prices frozen — good for people's bills, costly for the government.
- The extra spending totals over NT$600 billion, with the largest chunk aimed at holding down energy prices for people.
- More than NT$100 billion goes to cap gasoline, diesel, and natural gas prices, plus billions more for bottled cooking gas.
- Taipower gets a large subsidy so electricity prices can stay frozen, though a review committee still has the final say.
- State oil firm CPC gets a cash injection after six straight years of losses caused by holding prices below cost.
- The Middle East war that started in February pushed oil as high as $144 a barrel; without the price caps, pump prices and cooking gas would be far higher.
Outlook: If lawmakers pass the budget, bottled gas and household gas prices should stay flat through year-end, and electricity prices are likely to hold too.