Taipei-Taiwan's two major fuel suppliers on Sunday announced price increases of NT$0.5 per liter for gasoline and NT$0.9 per liter for diesel this week.
State-run CPC Corp., Taiwan said the price hike will result in prices at the pump of NT$27.3 per liter for 92 octane unleaded, NT$28.8 per liter for 95 octane unleaded, NT$30.8 per liter for 98 octane unleaded, and NT$25.5 per liter for super diesel, effective midnight Sunday.
The adjustments, which raise prices to a two-month high, came after a surge in global crude prices over the past week as oil and gas production fell in Saudi Arabia following drone attacks on two major oil facilities there, according to the company.
CPC adjusts its fuel prices weekly based on changes in crude oil prices calculated using a weighted oil price formula composed of 70 percent Dubai crude and 30 percent Brent crude.
Based on that formula, the price of crude rose US$4.02 during the past week to US$64.75 per barrel, which would have resulted in a 4.79 percent increase in fuel prices, CPC said.
That would indicate an increase of NT$0.8 per liter for gasoline and NT$0.9 per liter for diesel this week, it said.
However, the state-run company follows government guidelines that set a price ceiling to match the lowest fuel prices in Japan, South Korea, Hong Kong and Singapore -- four of Taiwan's major industrial competitors -- and it therefore decided to raise its gasoline prices by NT$0.5 per liter this week, according to CPC.
Meanwhile, CPC's main competitor, Formosa Petrochemical Corp. (FPCC), on Sunday announced identical adjustments in its fuel prices, which will take effect 1 a.m. Monday.
The privately run FPCC said that after the adjustments, prices at its gas stations will be NT$27.30 per liter for 92 octane unleaded, NT$28.70 per liter for 95 octane unleaded, NT$30.80 per liter for 98 octane unleaded, and NT$25.30 per liter for diesel.
Source: Focus Taiwan News Channel