CPC Corporation Taiwan Announces 2024 August NG and LPG Prices

On Wednesday (31), CPC Corporation announced that considering the need to support public welfare and adhere to the government's price stabilization policies, the residential NG (Natural Gas) price for August 2024 will not be adjusted, and the cost will be absorbed by CPC.

Based on the government-approved NG pricing formula and reflecting the cost of gas sources appropriately, the price for power generation users will increase by 1%. Additionally, after calculations, CPC has absorbed over NT$170 billion in non-power generation user gas costs from 2021 to May 2024, resulting in substantial NG losses.

Given that taxpayers subsidize the long-term absorption of industrial gas prices (including qualified Combined Heat and Power (CHP) and Natural Gas Utility Enterprise sales to industrial users), it seems inappropriate. Therefore, as of June 2024, the gas price for industrial users was adjusted, and a progressive pricing plan based on monthly gas usage was implemented. However, this plan will be canceled as of August 2024 to avoid impacting the downstream industry market competition, reverting to a single price.

CPC stated that this adjustment in industrial user gas prices aims to align with principles of fairness, reasonableness, and user-pays while reducing subsidies for industrial users. For detailed pricing and calculation methods for various NG products, please refer to the NG price table announced on the CPC official website.

CPC Corporation Taiwan Natural Gas (NG) Price List

Notes:
1. The above users must sign a purchase contract with CPC.
2. NG (1) and NG (2) industrial users' quantity discounts for single delivery metering are as per the attached table.
3. Before the official supply of "Liquefied Natural Gas" (LNG), the monthly price of LNG will be calculated according to the formula approved by the Ministry of Economic Affairs for users' reference.
4. Electricity users' prices will increase by 1%.
5. Public NG utilities will not adjust prices for NG supplied to residential users, with CPC absorbing the cost. Consequently, the prices in August for NG (1) will remain at 8.15 NTD/cubic meter, NG (2) at 8.88 NTD/cubic meter, and Liquefied NG at 12.09 NTD/kg. For non-electricity users (industrial users, qualified cogeneration systems, and public NG utilities selling to industrial users), the tiered subsidy based on monthly gas usage will be canceled, reverting to the previous single price.

CPC Corporation announced that the prices for household LPG (Liquefied Petroleum Gas), industrial propane, butane, mixed propane, and butane, and automotive LPG will not be adjusted for August, starting from midnight today (2).

CPC stated that LPG prices are handled according to the "CPC's LPG Price Monthly Review and Adjustment Mechanism." Based on the calculation results, the LPG price for August 2024 should decrease by NT$0.2 per kilogram. However, since this does not meet the minimum adjustment threshold of NT$0.25 per kilogram, there will be no adjustment according to the mechanism. The remaining unadjusted amount of NT$15.2 per kilogram will be compensated when international prices decrease in the future.

Reference: Ministry of Economic Affairs