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TAIPEI (Taiwan News) – CPC Corporation Taiwan and Formosa Petrochemical Corporation should be investigated for pocketing a total of NT$1.37 billion in excess air pollution fees last year, the Environmental Protection Administration said Tuesday.
The two oil refiners reacted to the reports by pushing through cuts in the gasoline prices late Monday, just a day after announcing price hikes.
Premier Wu Den-yih said that if an investigation showed the companies had pocketed too much money, they would have to return it to consumers, possibly in the form of a cut in gasoline prices.
The Cabinet ordered Economics Minister Shih Yen-shiang to investigate the case. Lawmakers criticized him because of his career background. He should not have to investigate the issue because he served as CPC Corp. Taiwan Chairman before he joined the Cabinet, said ruling Kuomintang legislator Lo Shu-lei.
EPA Minister Stephen Shen said staff at his department were talking to Ministry of Economic Affairs energy officials and to accountants to inspect the books at the two oil companies together. The investigation would determine whether the whole affair was a mistake or whether the oil companies had intended to mislead the EPA, he said.
In future, the companies would have to tell consumers how much of their gasoline prices went to the air pollution fees, Shen said.
The level of the fees depended on the sulfur content of the oil products from the companies, he said, adding that they were not allowed to keep any of the pollution fees.
Since the fees were launched in 2007, the investigation would also have to find out whether any excess fees were levied in 2007 and 2008.
The Control Yuan, the nation’s top government watchdog, was also preparing to launch an investigation of its own. Control Yuan member Cheng Jen-hung said he might visit CPC Corp. Taiwan to check their books instead of waiting for the company to supply information of its own accord.
Cheng said he would try to understand the policy making at the state-run oil group as well as determine the responsibility for any lack of adequate supervision.
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