PetroChina announced that domestic gasoline and diesel prices will increase by 0.7 yuan and 0.6 yuan respectively next week. (File photo)
Affected by the sharp rise in international oil prices, domestic oil prices have also been frozen for six consecutive years. China National Petroleum Corporation announced that starting from 00:00 next Monday (14th), the prices of gasoline and diesel will increase by 0.7 yuan and 0.6 yuan respectively. The Ministry of Economic Affairs called on the Legislative Yuan to support additional budget allocations for state-owned enterprises. In response, KMT legislator Li Yanxiu said that the Executive Yuan should use "reasons" and "improvement measures" to win the support of the Legislative Yuan, rather than using people's tax dollars to subsidize the government's long-term wrong energy policies.
The Executive Yuan meeting recently approved an additional budget of 421.769 billion yuan proposed by the Ministry of Economic Affairs. The Ministry of Economic Affairs pointed out that the Executive Yuan has activated the energy response team and planned measures to "stabilize energy supply," "stabilize people's living prices," "stabilize supply chain operations," and "stabilize market order." Among them, it will subsidize Taiwan's China National Petroleum Corporation to absorb the insufficient funds required to increase oil and gas. The Ministry of Economic Affairs simultaneously announced that natural gas and bottled gas for domestic consumption will be frozen until the end of the year, and it also hopes that all walks of life can support the budget.
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Li Yanxiu pointed out that since the beginning of this year, the price of gasoline has increased by 4.6 yuan per liter, and diesel has become more expensive by 4.9 yuan. From September 14 to September 20, China National Petroleum Corporation absorbed 6.8 yuan and 8.7 yuan respectively for gasoline and diesel, totaling 10.5 yuan and 10.8 yuan respectively for gasoline and diesel. By September 13, various measures to stabilize the project were implemented, and the total absorption for gasoline and diesel was about 19.85 billion yuan.
Li Yanxiu said that the annual growth rate of the Consumer Price Index (CPI) in August was 2.04%, which has exceeded the 2% inflation warning line for four consecutive months. The annual growth rate of the core CPI reached 2.3%. In particular, the annual growth rate of the cost of eating out reached 3.17%, the highest increase in eight months.
Li Yanxiu pointed out that in the face of the rising short-term crisis of the war in the Middle East, the government's responsibility is to "maintain price stability" and flexibly use the "frozen rise" and "slow rise" mechanisms of short-term oil and electricity prices to avoid further triggering an inflationary tsunami of "everything rises". In particular, prices are "rigid" and out-of-control inflation will affect people's real income and purchasing power, making it even worse for the middle and lower class people, endangering basic living needs.
Li Yanxiu said that the oil price stabilization mechanism (including slow increases, freeze increases, and reductions in goods taxes) is of course the government's most direct defense against soaring crude oil prices. However, including strengthening energy security and reserve management, long-term transformation countermeasures, and using policy incentives to encourage people to actively save energy and use public transportation, the government has fallen far short and has seriously neglected its duties.
Li Yanxiu: The Political Yuan uses "principles" and "improvement measures" to win the Legislative Yuan's support for the additional budget
Li Yanxiu believes that the short-term fluctuations in international crude oil and natural gas prices have an adjustment mechanism of "short-term" frozen increases and slow increases. The Legislative Yuan's budget review examines the rationality of budget allocation and long-term energy policies and implementation. The 180.9 billion yuan in the supplementary budget is allocated to subsidize state-owned enterprises. The Executive Yuan should use "reason" and "improvement measures" to win the support of the Legislative Yuan, rather than using people's tax dollars to subsidize the government's long-term wrong energy policies.
