Gasoline and diesel prices are set to decrease by NT$0.1 per liter this week, despite a recent increase in international crude oil prices, according to announcements from CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) yesterday.
International oil prices experienced a rebound last week, influenced by a rise in employment as indicated by the latest US economic data, and the continued optimism from OPEC members regarding the global oil demand outlook, the companies reported.
Market sentiment was further boosted by the onset of the peak summer consumption season in the northern hemisphere and an upward revision of global oil demand forecasts by the US Energy Information Administration, they added.
CPC noted that, based on its floating oil price formula, the cost of crude oil rose by 2.96 percent from the previous week. Under normal circumstances, this would have resulted in increases of NT$2.1 and NT$3.5 per liter for gasoline and diesel respectively. However, CPC decided to absorb part of these cost increases and utilize a price stabilization mechanism to adhere to government policy, which aims to keep domestic fuel prices lower than those in major neighboring markets.
Formosa Petrochemical has chosen to align with CPC’s price adjustments, taking into account global oil market trends, the New Taiwan dollar exchange rate, and intense domestic market competition.
Effective today, gasoline prices at CPC and Formosa stations will be adjusted to NT$29.2, NT$30.7, and NT$32.7 per liter for 92, 95, and 98-octane unleaded gasoline respectively, the companies announced. The price of premium diesel will be NT$26.7 per liter at CPC stations and NT$26.5 at Formosa pumps.
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