TAIWAN MOEA SAYS CPC OIL RESERVES CAN LAST ANOTHER TWO MONTHS.

TAIPEI, April 1 Asia Pulse - Following recent assurances by CPC Corp., Taiwan (CPC) that its oil reserves were sufficient to meet the surging demand, the Ministry of Economic Affairs (MOEA) reiterated Monday that the state-run refinery can continue for another two months, if necessary, to fully supply the local market.

Citing soaring international crude oil prices, Formosa Petrochemical Corp. (FPCC), Taiwan's only private refinery, hiked the prices of its gasoline and diesel products last Friday to NT$32.8 (US$1.08) and NT$30.6 per liter, respectively, while CPC maintained its prices at NT$30.0 per liter of gasoline and NT$27.5 per liter of diesel.

According to CPC, in the past three days its fuel demand rose by 30 per cent for gasoline and 34 per cent for diesel, a clear indication that many customers are turning to CPC because of its lower prices.

"The MOEA had anticipated that FPCC would raise its prices and that consumers would subsequently switch to CPC," MOEA Minister Steve R. L. Chen said at a Legislative Yuan hearing Monday.

CPC has sufficient oil reserves to sustain the demand for gasoline for another 64 days, and for diesel for another 75 days, even if all FPCC's customers switched to CPC, he added. FPCC has an estimated 20 per cent share of the local market.

Chen also refuted the speculation that the state-run company would need to borrow money to import more oil to meet demand.

Chen reiterated that the MOEA will seek to adjust prices at an "appropriate time," but stressed that any such decision would require the approval of the Executive Yuan.