Taipei, Dec. 10 (CNA) The state-owned oil refiner CPC Corp. Taiwan (??) said it will cut domestic gasoline prices and diesel prices for the week starting at midnight Sunday, following a drop in international crude oil prices last week.
The price of gasoline will be cut by NT$0.1 (US$0.0033) per liter, while diesel prices will be reduced by NT$0.2 per liter, CPC said.
After the adjustment, prices at CPC gas stations across Taiwan will be NT$23.9 per liter for super diesel, NT$26.1 per liter for 92 octane unleaded, NT$27.6 per liter for 95 unleaded and NT$29.6 per liter for 98 unleaded, the company said.
The price cut follows a drop in international crude prices amid renewed concerns over a global supply glut after a rise in crude output and an increase in gasoline inventories in the U.S. market.
Following an increase in U.S. gasoline stocks by 6.8 million barrels last week, there has been uncertainty over a nine-month extension of a production reduction agreement among the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers, which was due to expire in March 2018.
In addition, crude output in the U.S. market rose last week by 25,000 barrels per day to 9.71 million barrels per day, which also eroded the effects of the agreement.
CPC calculates weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude and adjusts fuel prices on a weekly basis based on the movements of the weighted price.
Following the recent fall in international crude prices, CPC's average price was calculated at US$61.13 per barrel this week, down from US$61.81 per barrel last week, according to its website.
Source: Focus Taiwan News Channel