Taipei, Taiwan's two main fuel suppliers will increase their prices this week, with gasoline prices rising for the seventh week in a row, due to international factors.
State-run oil refiner CPC Corp., Taiwan said the price of its gasoline products will increase by NT$0.10 per liter, and its diesel by NT$0.50 per liter, with effect from midnight Sunday.
With the adjustments, retail prices at CPC gas stations will be NT$28.60 (US$0.97) per liter for 92 octane unleaded, NT$30.10 per liter for 95 octane unleaded, NT$32.10 per liter for 98 octane unleaded, and NT$27.30 per liter for super diesel.
With those price hikes, domestic gasoline will show an accumulated increase of NT$2.10 per liter over a seven-week period.
CPC said one of the factors affecting its gas prices was the United States' announcement of an end to the sanctions waivers granted to eight economies, including Taiwan, that buy Iranian oil.
Based its calculations in a weighted oil price formula composed of 70 percent Dubai crude and 30 percent Brent crude (7D3B), CPC said, oil prices last week rose to US$73.59 per barrel from US$70.83 the previous week, which would have spurred an increase of NT$0.90 per liter for CPC gasoline and NT$0.60 per liter for its diesel.
However, CPC said, it has to absorb some of the increase because of guidelines that cap oil prices at no higher than the lowest price found in the markets of Taiwan's main industrial competitors -- Japan, South Korea, Hong Kong and Singapore -- and a stabilizing mechanism for whenever oil prices break the NT$30.00 level.
The company said it has already absorbed increases of more than NT$1.2 billion in the first three months of the year.
Meanwhile, CPC's main rival, Formosa Petrochemical Corp. (FPCC), on Sunday announced identical price adjustments for its fuel products, effective 1 a.m. Monday.
Prices at FPCC gas stations will be NT$28.60 per liter for 92 octane unleaded, NT$30.00 per liter for 95 octane unleaded, NT$32.10 per liter for 98 octane unleaded, and NT$27.10 per liter for diesel.
Aside from the U.S. tightening sanctions on Iran, FPCC said, Saudi Arabia's decision not ramp up oil production in the near future was another reason for the continued increase in global crude prices.
Source: Focus Taiwan News Channel