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Domestic fuel prices to drop

Domestic fuel prices to drop

Taipei, Nov. 6 (CNA) Two major oil companies in Taiwan, one state-run and the other private, announced Sunday a drop in domestic fuel prices based on lower crude oil prices that resulted from the economic uncertainty in Europe. The state-run CPC Corp. Taiwan said it would cut its gasoline and diesel prices by NT$0.2 per liter, with effect from midnight Monday. This will reduce the price of 92 octane unleaded gasoline to NT$30.9 (US$1.03) per liter and that of 95 unleaded to NT$31.6 per liter. The price of 98 unleaded gasoline will fall to NT$33.1, while prime-grade diesel will drop to NT$29 per liter. Meanwhile, the privately owned Formosa Petrochemical Corp. (FPC) said it will also drop its domestic gasoline and diesel prices by NT$0.2, effective 1 a.m. Monday. The new prices will be NT$30.9, NT$31.6 and NT$33.2 per liter for 92, 95 and 98 octane unleaded, respectively, while prime-grade diesel will fall to NT$29 per liter, FPC said. According to FPC, the price adjustments reflect a decrease in crude oil prices from US$108.56 per barrel to US$107.14 per barrel over the past week. Crude oil prices fell last week on the increasing uncertainty in Europe but rebounded slightly on the better-than-expected employment situation in the U.S. and the interest rate cut by the European Central Bank. CPC said it would lower its fuel prices by NT$0.2 per liter instead of NT$0.3 because it had been absorbing international oil price hikes at a cost of up to NT$3.1 per liter for gasoline and diesel. The NT$0.3 figure was calculated based on the floating fuel price mechanism. (By Lin Shu-yuan, Chao Hsiao-hui and Jamie Wang)