Domestic fuel prices are expected to fall further next week after a drop of NT$1 (US$0.03) per liter in pump prices for petroleum and diesel this Monday, based on the floating oil price formula used by the state-run petroleum refiner to determine fuel prices at the pump.
According to simulated results, CPC Corp. Taiwan is likely to cut its gasoline and diesel prices by NT$0.4 and NT$0.5 per liter, respectively, next week.
If this formula is followed, prices at CPC-run gas stations, which account for a lion's share of over 2,000 stations around Taiwan, will fall to NT$19.9 per liter for super diesel, NT$22.4 per liter for 92 octane unleaded gasoline, NT$23.9 per liter for 95 unleaded and NT$25.9 per liter for 98 unleaded, CPC sources revealed.
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 price per barrel of crude oil stood at US$42.96 as of Nov. 9, down from US$44.70 last week, according to the CPC website.
In addition, the Taiwan dollar depreciated NT$0.13 to close at NT$31.589 against the greenback on Thursday.
Foreign wire service reports have said that output from Organization of Petroleum Exporting Countries (OPEC) members hit a new high in October, leading to a drop of more than 1 percent in international oil prices.
Real estate tycoon Donald Trump vowed to remove restrictions against oil drilling operations during his campaign for the U.S. presidency, which makes it likely the United States will increase crude oil output. If that happens, it will become even more difficult for the oil market to balance supply and demand, sources anticipated.
CPC is scheduled to announce its latest price adjustments at noon on Sunday and put them into effect at midnight.
Source: Focus Taiwan News Channel