surprised observers Tuesday when it announced it would cut domestic gasoline and diesel prices by NT$0.4 per liter, effective Wednesday. The reduction was the company's second price cut in two days. The cuts have resulted in prices at the pump of NT$30.8 per liter for 98-octane unleaded, NT$29.3 per liter for 95-octane unleaded, NT$28.6 per liter for 92-octane unleaded, and NT$26.1 per liter for premium diesel. The decision, following a NT$0.1 per liter cut announced on Monday, was reportedly made after Premier Wu Den-yih demanded that public institutions not 'take advantage of consumers.' The Ministry of Economic Affairs (MOEA) discovered recently that since CPC began implementing a floating pricing mechanism on gasoline and diesel fuel in September 2006, it has overcharged consumers by more than NT$5.4 billion for air pollution fees and a crude oil fund. The following are excerpts of local media coverage of the issue: United Daily News: Premier Wu Den-yih praised the MOEA's move to push gasoline prices lower as the 'right move' after the ministry discovered that gasoline vendors had overcharged for air pollution fees. It shows that Wu's Cabinet can quickly respond to public opinions and that the Cabinet pays attention to public discontent. Control Yuan member Cheng Jen-hung revealed that he will launch a probe to see if there were high-ranking officials who benefited from overcharging for the fees or neglected their duty in monitoring operations of the state-run oil refiner. China Times: Wu believes that the MOEA should ask CPC to return to consumers the money it overcharged once the ministry discovers the difference between air pollution fee revenues and the amount it must turn over to the Environmental Protection Administration (EPA). No consumer should be taken advantage of, he said. Appearing more cautious on the issue, EPA Minister Stephen Shu-hung Shen said the issue reflected an accounting problem at CPC and the privately run Formosa Petrochemical. It cannot be called dirty money if the overcharged revenues were spent on equipment to upgrade gasoline and diesel quality, Shen added. EPA officials said they will visit CPC and FPC headquarters Wednesday along with Bureau of Energy staffers to review the companies' cost structure. Commercial Times: Since media reports discovered Feb. 8 that CPC and FPC overcharged motorists in collecting air pollution fees, the MOEA has been busy resolving the crisis and trying to 'reward' consumers by lowering gasoline and diesel prices. The ministry, however, does not appear to believe that the state-run company was guilty of 'operational flaws' in overcharging for air pollution fees. Obviously, the MOEA lacks the courage to make an apology. Liberty Times: Criticizing EPA Minister Stephen Shen for 'defending the businesses, ' Consumers' Foundation Chairman Hsieh Tien-jen said he cannot understand why the administration would protect CPC and FPC even after the MOEA and the two petroleum companies have admitted to making mistakes in the air pollution fee dispute. Hsieh also blasted CPC and FPC for spending the money, designated for upgrading pollution prevention equipment, on their own needs in improving the oil refining process. (Feb. 10, 2010) 