Middle East Situation Impacts Asphalt Prices; Chen Chin-te: Raw Material Tar Supply Is Secure
Due to tensions in the Middle East causing a drop in crude oil imports, asphalt prices have surged in Taiwan. However, PCC Minister Chen Chin-te confirmed that domestic refiners have adjusted production, ensuring a stable supply of raw materials.
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- 📰 Published: April 13, 2026 at 13:49
- 🔍 Collected: April 13, 2026 at 14:01 (12 min after Published)
- 🤖 AI Analyzed: April 19, 2026 at 21:26 (151h 24m after Collected)
Central News Agency
(CNA, Taipei, 13th) Affected by the situation in the Middle East, legislators raised concerns about rising asphalt prices and material shortages. Public Construction Commission (PCC) Minister Chen Chin-te stated that the war in the Middle East led to lower crude oil imports, affecting tar production and subsequently reducing asphalt supply. However, Formosa Petrochemical and CPC Corporation have successively procured or increased their refining ratios, ensuring that the raw material tar for asphalt is no longer an issue.
The Transportation Committee of the Legislative Yuan today invited Chen Chin-te, Minister of the Public Construction Commission, Executive Yuan, to present a business overview report.
During interpellation, Democratic Progressive Party (DPP) legislator Hsu Fu-kuei stated that asphalt prices have recently surged due to the Middle East war. Chen Chin-te explained that the crude oil used to make tar comes from the Middle East. The war caused a decrease in crude oil imports, which affected tar production and led to a decrease in asphalt, naturally causing shortages and price hikes.
Chen stated that if public works are affected by this situation, contractors and engineering agencies can mutually agree to adjust prices according to the contract, and the construction period can also be extended.
Chen emphasized that Taiwan's CPC Corporation and Formosa Plastics Group's Formosa Petrochemical are the ones capable of producing tar. Currently, tar supply is no longer an issue because Formosa Petrochemical, with its two oil refining processes, has increased its refining ratio. Additionally, Zhongsu, which sells tar, still has an inventory of 45,000 tons and will halt supply to foreign contracted buyers to prioritize domestic needs. CPC is also actively purchasing spot tar in the market to meet domestic demand.
Chen mentioned that Premier Cho Jung-tai also hopes domestic manufacturers will prioritize domestic demand, expressing gratitude to Formosa Petrochemical and Zhongsu for their cooperation. Based on data gathered last week, the supply of raw material tar for asphalt is no longer a problem.
Kuomintang (KMT) legislator Chiu Jo-hua inquired about the extent of the asphalt price hike. Chen stated that according to earlier data, the increase was about 14% in the North, 10% in the Central region, 16% in the South, and 13% in the East.
PCC Deputy Minister Li I-te added that based on historical data, asphalt concrete prices remained relatively stable until February of this year, but fluctuations appeared in March. Relevant price information will be published soon.
Furthermore, Hsu Fu-kuei asked about the views and feasibility regarding China's unilateral start of construction on the Kinmen-Xiamen bridge. Chen said the PCC oversees domestic public works and "probably has no jurisdiction over foreign public works." He added that this is a highly political issue; the premise must be a friendly and equal state-to-state relationship. If the other side is acting for the well-being of the people while ensuring equal sovereignty across the strait, it would naturally be a good thing. However, given that the Chinese Communist Party's policies and actions—such as encircling military aircraft and the threat of armed unification—have not changed, national security must be carefully considered. (Editor: Su Chih-tsung) 1150413
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(CNA, Taipei, 13th) Affected by the situation in the Middle East, legislators raised concerns about rising asphalt prices and material shortages. Public Construction Commission (PCC) Minister Chen Chin-te stated that the war in the Middle East led to lower crude oil imports, affecting tar production and subsequently reducing asphalt supply. However, Formosa Petrochemical and CPC Corporation have successively procured or increased their refining ratios, ensuring that the raw material tar for asphalt is no longer an issue.
The Transportation Committee of the Legislative Yuan today invited Chen Chin-te, Minister of the Public Construction Commission, Executive Yuan, to present a business overview report.
During interpellation, Democratic Progressive Party (DPP) legislator Hsu Fu-kuei stated that asphalt prices have recently surged due to the Middle East war. Chen Chin-te explained that the crude oil used to make tar comes from the Middle East. The war caused a decrease in crude oil imports, which affected tar production and led to a decrease in asphalt, naturally causing shortages and price hikes.
Chen stated that if public works are affected by this situation, contractors and engineering agencies can mutually agree to adjust prices according to the contract, and the construction period can also be extended.
Chen emphasized that Taiwan's CPC Corporation and Formosa Plastics Group's Formosa Petrochemical are the ones capable of producing tar. Currently, tar supply is no longer an issue because Formosa Petrochemical, with its two oil refining processes, has increased its refining ratio. Additionally, Zhongsu, which sells tar, still has an inventory of 45,000 tons and will halt supply to foreign contracted buyers to prioritize domestic needs. CPC is also actively purchasing spot tar in the market to meet domestic demand.
Chen mentioned that Premier Cho Jung-tai also hopes domestic manufacturers will prioritize domestic demand, expressing gratitude to Formosa Petrochemical and Zhongsu for their cooperation. Based on data gathered last week, the supply of raw material tar for asphalt is no longer a problem.
Kuomintang (KMT) legislator Chiu Jo-hua inquired about the extent of the asphalt price hike. Chen stated that according to earlier data, the increase was about 14% in the North, 10% in the Central region, 16% in the South, and 13% in the East.
PCC Deputy Minister Li I-te added that based on historical data, asphalt concrete prices remained relatively stable until February of this year, but fluctuations appeared in March. Relevant price information will be published soon.
Furthermore, Hsu Fu-kuei asked about the views and feasibility regarding China's unilateral start of construction on the Kinmen-Xiamen bridge. Chen said the PCC oversees domestic public works and "probably has no jurisdiction over foreign public works." He added that this is a highly political issue; the premise must be a friendly and equal state-to-state relationship. If the other side is acting for the well-being of the people while ensuring equal sovereignty across the strait, it would naturally be a good thing. However, given that the Chinese Communist Party's policies and actions—such as encircling military aircraft and the threat of armed unification—have not changed, national security must be carefully considered. (Editor: Su Chih-tsung) 1150413
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The text, pictures, and audio-visual materials on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.