Taipei, Domestic diesel prices will rise by NT$0.4 (US$0.013) per liter but gasoline prices will stay unchanged this week, Taiwan's two major suppliers announced Sunday.
State-owned oil refiner CPC Corp. Taiwan said prices at CPC gas stations nationwide will remain at NT$26.3 per liter for 92 octane unleaded, NT$27.8 per liter for 95 unleaded, and NT$29.8 per liter for 98 unleaded during the coming week.
But the price for super diesel will go up to NT$25.5 per liter as of Sunday midnight.
CPC should have raised gasoline and diesel prices by NT$1.6 and NT$0.7 per liter, respectively, this week based on its pricing formula following a rise in international crude oil prices.
It decided instead to leave gasoline prices unchanged and raise diesel prices by only NT$0.4 per liter to maintain domestic fuel prices at lower levels than neighboring markets in the region.
It will be the fifth consecutive week in which the company has adopted a policy of keeping a lid on fuel prices, dating back to the week of the Lunar New Year holiday in the first week of February.
Last week, international crude oil prices surged as Saudi Arabia promised to make deeper production cuts and optimism emerged from talks between China and the United States on resolving their trade war.
That resulted in an increase to US$66.73 per barrel last week in CPC's weighted oil price formula, up from US$63.54 a week earlier.
Had the company adjusted fuel prices this week in line with its standard formula, gasoline and diesel prices would have risen by NT$1.6 and NT$0.7 per liter, respectively, in the coming week.
According to CPC's estimates, absorbing the increase in crude oil prices will cost it NT$240 million this week, bringing its cumulative losses to NT$325 million since the company began capping price increases during the Lunar New Year holiday.
CPC's main competitor, privately owned Formosa Petrochemical Corp., announced identical price adjustments on Sunday, to take effect at 1 a.m. Monday.
After the adjustments, prices at Formosa Petrochemical gas stations nationwide will be NT$26.3 per liter for 92 octane unleaded, NT$27.7 per liter for 95 unleaded, NT$29.8 per liter for 98 unleaded and NT$25.3 per liter for super diesel, the company said.
Source: Focus Taiwan News Channel