Shih Yen-shiang, head of the "Ministry of Economic Affairs" (MOEA), said Monday that the MOEA has no immediate plan for a review of the floating oil pricing mechanism because international crude oil prices are not high enough to warrant one.

In a questioning session at the Legislative Yuan, Shih said that despite recent hikes, international crude oil prices remain tolerable.

With the pricing mechanism pegged to international crude prices, government-run oil company CPC Corp raised domestic gasoline and diesel prices again Monday after three hikes in April, as international crude rose above $83 per barrel.

If international crude prices breach $100 per barrel, the MOEA will reconsider a floating pricing mechanism, a CPC spokeswoman said.

As for water conservation, Shih said the MOEA is planning to offer subsidies to consumers who buy water-saving toilets and washing machines.

Subsidies will total NT$500 million ($15.9 million) and are expected to save about 4 million tons of water a year, Shih said, adding that the Executive Yuan has not approved the subsidy project.

China Daily/CNA

(HK Edition 05/04/2010 page4)