Taiwan to launch new pricing system to curb fuel price hikes

A new pricing system for retail fuel in Taiwan starts on Monday, according to the island's economic authority.

The new system has rules at different stages of price changes for 95-octane unleaded gasoline.

No adjustment will be initiated if the gasoline is below 30 new Taiwan dollars (US$1) per liter.

When the price is between 30 and 32.4 new Taiwan dollars per liter, 25 percent of the changes are absorbed, rising to 50 percent when it ranges between 32.5 and 34.9 new Taiwan dollars.

If the price is above 35 new Taiwan dollars per liter, only 25 percent of the change is represented in the retail price.

The move is expected to offset the pressure on inflation as the price of 95-octane unleaded gasoline was nearly 30 new Taiwan dollars per liter in the past week, the authority said.