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Domestic fuel prices forecast to fall next week

Domestic fuel prices forecast to fall next week

Taipei, May 14 (CNA) Fuel prices in Taiwan are expected drop next week, ending a five-week rising streak, as the price of international crude oil fell overnight, market sources said Thursday. The state-owned CPC Corp., Taiwan (??) is likely to announce lower prices for gasoline and diesel next week, based on a weighted oil price formula comprising 70 percent Dubai crude and 30 percent Brent crude, the sources said. With the drop in international crude oil prices, CPC's fuel prices are likely to fall accordingly by NT$0.2 (US$0.007) per liter next week, after five consecutive weeks of increases, according to the sources. Although oil inventories in the U.S. market fell more than expected, a production slowdown in oil refineries has triggered concerns over weakening demand in the global market, the sources said. According to a market estimate, about 91.2 percent of oil refineries' capacity was utilized this week, down from 93 percent a week earlier, in a departure from the typical increase in the refinery utilization rate at this time of year as the busy summer driving season approaches. Such concerns over slower demand sent international crude oil prices lower Wednesday. Crude prices for June delivery on the New York Mercantile Exchange fell 0.4 percent to US$60.50 a barrel, while Brent crude on the ICE Futures Europe Exchange dropped 0.1 percent to US$66.81 per barrel. According to the CPC website, the average price of a barrel of crude under its weekly floating price formula stood at US$64.38 as of May 13, down from US$65.20 the previous week. If the price reduction is implemented next week as expected, prices at the pump will rise to NT$24.2 per liter for super diesel, NT$26.1 per liter for 92 octane unleaded gasoline, NT$27.6 per liter for 95 octane unleaded gasoline and NT$29.6 per liter for 98 octane unleaded gasoline. The CPC is scheduled to announce new fuel prices for next week on Sunday noon. (By Lin Meng-ju and Frances Huang)


Updated : 2021-09-17 10:19 GMT+08:00