State-run petroleum refiner CPC Corp., Taiwan said Sunday that it will reduce its gasoline and diesel prices next week, based on lower international crude oil prices.
With effect from midnight Sunday, prices at CPC fuel pumps will drop by NT$0.3 (US$0.009) per liter for gasoline and NT$0.4 per liter for diesel, according to the company.
With the cuts, prices at CPC-run gas stations countrywide will be NT$20.0 per liter for super diesel, NT$22.5 per liter for 92 octane unleaded, NT$24.0 per liter for 95 unleaded and NT$26.0 per liter for 98 unleaded.
The price cut came after CPC's main competitor, the privately owned Formosa Petrochemical, made a similar announcement the previous day.
Starting from 1 a.m. Monday, prices at Formosa Petrochemical gas stations will drop to NT$19.7 per liter for super diesel, NT$22.4 per liter for 92 octane unleaded, NT$23.9 per liter for 95 unleaded and NT$26.2 per liter for 98 unleaded.
The decisions followed a price reduction last week of NT$1 per liter for fuel at pumps around Taiwan.
CPC said international crude oil prices continued to drop over the past week because the market was doubtful that the Organization of the Petroleum Exporting Countries (OPEC) would actually implement an agreement to reduce its production, after Saudi Arabia threatened to increase its output in an effort to maintain its market share.
Also the United States' crude oil inventory has been increasing over the past two weeks, CPC said.
CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.
The average 7D3B price per barrel of crude oil was US$43.06 as of Nov. 11, down from US$44.70 a week earlier, according to CPC data.
Meanwhile, the Taiwan dollar depreciated NT$0.044 last week against the U.S. dollar to NT$31.575.
Based on the floating oil price formula, domestic fuel prices will be adjusted 2.83 percent lower, CPC said.
Source: Focus Taiwan News Channel