Taiwan’s economy ministry warns oil price rises will be regulated to ensure inflation remains stable

Taiwan’s economy ministry warns oil price rises will be regulated to ensure inflation remains stable

Taiwan’s Ministry of Economic Affairs has confirmed that the country’s crude oil reserves exceed 100 days and natural gas reserves surpass 11 days, both above regulatory safety thresholds, as regional conflicts in the Middle East continue to disrupt global energy markets according to official reports. Minister Kung Ming-hsin emphasized that maintaining domestic price stability remains a priority, with state-run CPC Corp, Taiwan, implementing a “dual stabilization mechanism” to smooth oil prices and align them with the lowest rates among neighboring Asian economies as detailed in government documents. These measures aim to mitigate inflationary pressures, which rose 1.75% year-on-year in February, driven by seasonal factors and service-sector costs, though officials project the rate will remain below the 2% warning threshold in March according to economic analysis(https://focustaiwan.tw/business/202603060020).

To secure energy supplies, the government is coordinating with suppliers such as the U.S. and Australia to expedite deliveries, exploring gas-sharing arrangements with Japan and South Korea, and considering spot-market purchases despite higher costs as reported by business sources. Academic research further underscores the effectiveness of Taiwan’s energy pricing policies in stabilizing output growth and inflation compared to monetary policy, highlighting the role of state-owned enterprises like CPC and Taiwan Power Co in buffering global energy volatility according to peer-reviewed studies. While coal-fired backup generators remain a contingency option, their use is constrained by seasonal air pollution regulations as noted in environmental reports. The government’s proactive approach, including tax reductions on essential energy imports, is expected to limit the impact of rising Brent crude prices on domestic inflation according to economic forecasts.