Taipei, Nov. 11 (CNA) Fuel prices in Taiwan will fall for the fourth consecutive week in response to a drop in international crude oil prices last week, the country's two major suppliers said Sunday.
The price of gasoline and diesel will be lowered by NT$0.7 (US$0.023) and NT$0.8 per liter, respectively, starting at midnight Sunday, state-owned refiner CPC Corp., Taiwan said.
After the drop, the biggest this year, prices at CPC gas stations nationwide will be NT$28.5 per liter for 92 octane unleaded, NT$30.0 per liter for 95 unleaded, and NT$32.0 per liter for 98 unleaded, while super diesel will be NT$26.5 per liter.
Meanwhile, privately owned Formosa Petrochemical announced identical price cuts, with effect from 1 a.m. Monday, which means prices at its gas stations will be NT$28.5 per liter for 92 octane unleaded, NT$29.9 per liter for 95 unleaded, NT$32.0 per liter for 98 unleaded and NT$26.2 per liter for super diesel.
The fuel suppliers said the price cuts reflect falling crude oil prices on the international market due to peak output from the Organization of the Petroleum Exporting Countries (OPEC) and Russia and an easing of United States sanctions against Iranian oil exports last week.
CPC normally adjusts its prices at the pump on a weekly basis, depending on price fluctuations in global crude oil markets, but decided on Oct. 7 to cap fuel prices at the previous week's level until the end of the year to help keep domestic price levels stable.
CPC Vice President J.Z. Fang (???) said that since the price cap was introduced and a government fuel price stabilization mechanism took effect in May, the state company has absorbed NT$1.4 billion in price increases.
Under the price stabilization mechanism, if the price of the benchmark 95 unleaded gasoline rises to between NT$30 and NT$32.4 per liter according to CPC's weekly weighted price formula, the fuel supplier will absorb 25 percent of the weekly price increase and consumers will shoulder the remaining 75 percent.
Source: Focus Taiwan News Channel