CPC to cut fuel prices this week

Taipei--State-owned CPC Corp. Taiwan (??) said Sunday that it will lower gasoline prices by NT$0.2 (US$0.0066) per liter and diesel prices by NT$0.3 to reflect a drop in international crude oil prices.

When the price adjustments take effect at midnight Sunday, prices at CPC pumps will fall to NT$21.2 per liter for super diesel, NT$23.6 per liter for 92 octane unleaded gasoline, NT$25.1 per liter for 95 octane unleaded, and NT$27.1 per liter for 98 unleaded, the company said.

International crude oil prices fell this past week amid concerns over higher U.S. crude production although the concerns were slightly counterbalanced by renewed optimism over a planned cut or freeze in production led by the Organization of Petroleum Exporting Countries (OPEC) in order to prevent an oil price collapse in spring, according to CPC.

After taking into account international crude price fluctuations and currency exchange rates, the company said, it decided to lower the wholesale price of diesel and octane fuels this week.

CPC calculates its weekly fuel prices based on a weighted oil price formula comprising 70 percent Dubai crude and 30 percent Brent crude (7D3B).

The company's data showed the average price of 7D3B at US$49.70 per barrel last week, a fall of US$0.44 from the previous week.

Meanwhile, the New Taiwan dollar rose against the U.S. dollar last week, increasing NT$0.308, which affected the price of oil imports.

Under the CPC's floating pricing mechanism, the average price of domestic diesel and gasoline will be 1.49 percent lower this week, CPC data shows.

On Saturday, Formosa Petrochemical Corp. (????), a privately owned fuel supplier and CPC's main competitor, announced a similar cut in gasoline and diesel prices.

When Formosa Petrochemical's cuts are implemented at 1 a.m. Monday, prices at its gas stations islandwide will drop to NT$20.9 per liter for super diesel, NT$23.6 per liter for 92 octane unleaded, NT$25 per liter for 95 unleaded and NT$27.1 per liter for 98 unleaded.

Source: Focus Taiwan News Channel