Taipei, Sept. 16 (CNA) Domestic gasoline and diesel prices will increase by NT$0.2 (US$0.006) this week to the highest level since October 2014, amid worries over escalating tensions between the United States and Iran and a hurricane strike on the U.S. east coast, Taiwan's two major suppliers said Sunday.
State-owned oil refiner CPC Corp., Taiwan said that after the increases, which will take effect at midnight Sunday, prices at its gas stations nationwide will rise to NT$29.5 per liter for 92 octane unleaded, NT$31 per liter for 95 unleaded and NT$33 per liter for 98 unleaded.
The price of super diesel will increase to NT$27.7 per liter, according to the company.
The last time the benchmark 95 octane unleaded surged past NT$31 per liter was on October 27, 2014, when it shot up to NT$31.3.
Meanwhile, privately owned Formosa Petrochemical announced identical price increases, which will take effect from 1 a.m. Monday.
Prices at Formosa Petrochem gas stations nationwide will climb to NT$27.4 per liter for super diesel, NT$29.5 per liter for 92 octane unleaded, NT$30.9 per liter for 95 unleaded and NT$33 per liter for 98 unleaded, the company said.
The fuel price hikes were due to a bigger-than-expected drop in U.S. crude oil inventories for commercial use, market speculation resulting from the U.S.' planned sanctions against Iran's energy sector, and panic buying ahead of Hurricane Florence, according to CPC.
However, international crude oil prices are expected to stabilize after the implementation of the U.S. sanctions in November, CPC Vice President Bi Su-chien (???) said.
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.
Under its floating pricing mechanism, the average price per barrel of crude grew US$0.92 this past week, from US$70.06 to US$76.98, according to the CPC website.
Source: Focus Taiwan News Channel