Taipei, State-owned oil refiner CPC Corp., Taiwan said Sunday that it will cut gasoline and diesel prices this week by NT$0.4 (US$0.01) per liter, ending three weeks of increases.
After the adjustment, which will take effect at midnight Sunday, prices at CPC gas stations nationwide will be NT$28.8 per liter for 92 octane unleaded, NT$30.3 per liter for 95 unleaded, NT$32.2 per liter for 98 unleaded, and NT$26.9 per liter for super diesel, the company said.
Crude oil prices fell last week mainly because Russia and Saudi Arabia were hammering out the terms of a deal to jointly increase oil production and due to an increase in crude inventories in the United States, according to CPC.
The NT$0.4 price cut follows a drop in international crude oil prices and was decided under a fuel price stabilization mechanism introduced by Taiwan's 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 price should have been cut by NT$0.3 to NT$30.4 in the coming week after the average price of crude per barrel dropped by US$2.56 this past week from US$77.22 to US$74.66.
Meanwhile, privately-run Formosa Petrochemical announced Sunday it will cut its gasoline and diesel prices by NT$0.4 per liter, effective from 1:00 a.m. Monday.
After the latest adjustments, prices at Formosa Petrochemical gas stations islandwide will be NT$26.6 per liter for super diesel, NT$28.8 per liter for 92 octane unleaded, NT$30.2 per liter for 95 unleaded and NT$32.3 per liter for 98 unleaded, the company said.
Source: Focus Taiwan News Channel