According to the Economics Ministry's price review committee's meeting on Friday, electricity rates and fares for Taiwan Railway (TRA) and city metro systems are most likely set to rise.
Premier Chen Chien-jen (陳建仁) says that electricity price hikes, which are supposed to rise by an average of 11%, will consider the public's well-being and subsidies will be provided to groups in need, such as the agricultural, fishing, long-term care, social welfare, and educational sectors.
In 2023, the central bank unexpectedly raised interest rates to curb inflation, impacting mortgage and student loan holders. Chen points out that the stock market’s unprecedented surpassing of 20,000 points reflects Taiwan's economic vitality, justifying the interest rate hike to ensure stable economic development.
Chen acknowledges potential impacts on disadvantaged groups, workers, and students and says the administration will be coordinating policies to consider lower interest rates or subsidies for affordable housing mortgages, student loans, worker relief loans, and business loans.
The TRA is a crucial transportation mode carrying over 100 million passengers yearly and fares have not risen for 28 years in alignment with government policies. The government respects the railway's decision to raise prices and will promote the TPASS program, which allows unlimited public transportation for frequent commuters.