Taipei, Domestic gasoline and diesel prices will increase by NT$0.2 (US$0.0067) per liter this week, which will take the price of 95 octane unleaded gas close to NT$31 per liter.
The third consecutive weekly price hike is being driven by higher international crude oil prices amid tensions between the United States and Iran, an economic crisis in oil-rich Venezuela, and a rise in the U.S.'s oil inventory, according to Taiwan's two major suppliers.
State-owned oil refiner CPC Corp., Taiwan said that when the adjustments take effect at midnight Sunday, prices at its gas stations nationwide will be NT$29.2 per liter for 92 octane unleaded, NT$30.7 per liter for 95 unleaded, and NT$32.7 per liter for 98 unleaded.
The price of super diesel will rise to NT$27.3 per liter, CPC said.
The NT$0.2 price hike was decided under a fuel price stabilization mechanism put forth by the Taiwan government on May 11.
Under the new mechanism, if the price of benchmark 95 unleaded gasoline rises to between NT$30 and NT$32.4 per liter according to CPC's weekly weighted price formula, CPC will shoulder 25 percent of the weekly price increase and consumers will bear the remaining 75 percent.
CPC normally calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude. Under this floating pricing mechanism, the prices of gasoline and diesel would have increased by NT$0.4 per liter this week as crude rose by US$0.68 per barrel on average last week, from US$76.54 to US$77.22.
Meanwhile, privately-run Formosa Petrochemical also said Sunday that it will raise its gasoline and diesel prices by NT$0.2 per liter, with effect from 1 a.m. Monday.
After the latest adjustments, prices at Formosa Petrochemical gas stations islandwide will be NT$27 per liter for super diesel, NT$29.2 per liter for 92 octane unleaded, NT$30.6 per liter for 95 unleaded, and NT$32.7 per liter for 98 unleaded, the company said.
Source: Focus Taiwan News Channel