Taipei-Formosa Petrochemical Corp., a private fuel supplier in Taiwan, said Saturday that it will raise its domestic gasoline and diesel prices next week, after crude oil prices in the U.S. market reached US$62 per barrel at one point earlier this week.
Higher international crude oil prices due to diminishing concerns over a global supply prompted Formosa Petrochemical to raise its gasoline and diesel prices by NT$0.2 (US$0.007) per liter, effective from 1 a.m. Monday.
It is the fourth consecutive week that Formosa Petrochemical will increase domestic fuel prices.
After the adjustments, prices at Formosa Petrochemical gas stations islandwide will rise to NT$24.5 per liter for super diesel, NT$26.9 per liter for 92 octane unleaded, NT$28.3 per liter for 95 unleaded and NT$30.4 per liter for 98 unleaded, the company said.
West Texas Intermediate crude futures in the New York market soared past US$62 per barrel on Thursday to US$62.21, the highest price since early 2015, but dropped slightly the day after. Oil prices on the global market have been climbing amid escalating anti-government protests in Iran, one of the major oil producers in the Middle East, and also due to a steeper-than-expected fall in crude inventories in the U.S. market.
According to the U.S. Energy Information Administration, crude stocks fell by 7.4 million barrels in the last week of 2017, compared with a market estimate of a drop of 1.7 million barrels.
Meanwhile, oil consumption in North America increased this week as people tried to cope with bitterly cold weather, which also sent crude oil prices higher, dealers said.
With the rise in crude oil prices, Formosa Petrochemical's main competitor, state-owned CPC Corp. Taiwan, is also likely on Sunday to announce similar price adjustments for next week.
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.
Based on the latest fluctuations in international crude oil prices, CPC's average price of crude oil was calculated at US$65.57 per barrel as of Thursday, an increase of US$1.11 from a week earlier, according to its website.
Source: Focus Taiwan News Channel