Formosa Petrochemical Corp. (????), a privately owned fuel supplier, said Saturday that it will cut its gasoline and diesel prices by NT$0.5 (US$0.016) per liter next week, in reflection of a fall in international crude oil prices.
The price cut, which will become effective from 1 a.m. Monday, stopped a three-week increase for the company's fuel prices. This week, it hiked gasoline and diesel prices by NT$0.10 per liter.
Weakness in global oil prices resulted from renewed concerns over a supply glut after a report released by the U.S. Energy Information Administration (EIA) on Wednesday pointed to higher-than- expected oil inventories in the U.S. market, Formosa Petrochemical said.
According to the EIA report, U.S. crude stockpiles grew by 2.3 million barrels last week, increasing for the second consecutive week and beating the market's expectations of an increase of 921,000 barrels.
Formosa Petrochemical said that while members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet later this month to discuss a possible production freeze, the market still has doubts that the meeting will yield any positive conclusion.
After the adjustment, fuel prices at the company's gas stations nationwide will fall to NT$20.1 per liter for super diesel, NT$22.8 per liter for 92 octane unleaded, NT$24.3 per liter for 95 unleaded and NT$26.6 per liter for 98 unleaded.
The company's major competitor, state-owned CPC Corp., Taiwan (??), is expected to announce similar price adjustments at noon Sunday, with the new prices becoming effective at midnight.
Source: Focus Taiwan News Channel