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Jun 3, 2008

DPP looks to limit oil prices with export controls

Again, Taipei Times:

The Democratic Progressive Party (DPP) caucus said yesterday it would propose an amendment to the Petroleum Management Law (石油管理法) to restrict and impose taxes on oil product exports.

DPP Legislator Wong Chin-chu (翁金珠) told a press conference that while CPC Corp, Taiwan (台灣中油, CPC) made profits of just NT$15.4 billion (US$510 million) last year, Formosa Petrochemical Corp (台塑石化) made NT$78.5 billion. In the first quarter of this year Formosa has enjoyed a surplus of NT$13 billion, while CPC has incurred losses of more than NT$20 billion.

Wong said she suspected Formosa had profited from exporting oil products.

DPP Legislator Chen Ting-fei (陳亭妃) said statistics showed that while Formosa has exported 63 percent of the petroleum it refines, CPC has only exported 21 percent. Formosa exported 84 percent of the diesel oil it refined, while CPC exported just 29 percent.

Wong said the proposed amendment would restrict oil companies from exporting oil products.

She said the amendment also imposes export taxes on oil products.

The Chinese Nationalist Party (KMT) caucus expressed support.

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