Taipei: Taiwan moved this week to shield consumers and businesses from a sharp rise in global energy prices triggered by Middle East tensions, with state-run CPC Corp. raising gasoline and diesel prices by about $0.06 and $0.04 per liter, respectively.

According to Anadolu Agency, Premier Cho Jung-tai stated that under normal market conditions, gasoline prices would have increased by around $0.47 per liter. However, the government absorbed nearly 75% of the hike under a price stabilization mechanism aimed at keeping domestic fuel costs below those of neighboring economies.

Official data revealed that Taiwan spent $51.59 billion on energy imports in 2024, with import dependence exceeding 95%. Approximately 40% of those imports originated from the Middle East, totaling roughly $47 billion. Authorities confirmed that Taiwan could meet domestic energy demand through the end of May after adjusting shipping schedules and securing additional supplies from outside the Middle East for June.

Taiwanese leader Lai Ching-te announced that the island maintains around 12 to 14 days of liquefied natural gas (LNG) reserves, while oil stockpiles exceed 100 days. He also showed willingness to reconsider the use of decommissioned nuclear power plants as electricity demand rises, driven in part by the expansion of artificial intelligence technologies, despite the government's earlier commitment to a nuclear phaseout and a failed 2025 referendum on restarting the last reactor.

Analysts caution that for Taiwan's semiconductor sector, the risks extend beyond higher electricity costs to potential disruptions in supplies of critical industrial gases and petrochemical feedstocks.