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Domestic fuel prices forecast to fall next week

Domestic fuel prices forecast to fall next week

Taipei, July 3 (CNA) Fuel prices in Taiwan are expected to fall next week in the wake of another drop in international crude oil prices as the debt woes in Greece continue to affect market sentiment, market sources said Friday. An increase in oil stockpiles in the United States has dragged down international crude oil prices, which is expected to send local fuel prices lower, the sources said. The state-owned CPC Corp., Taiwan (??) is likely to announce a NT$0.1 (US$0.003) per liter reduction in the cost of diesel and gasoline next week, dropping fuel prices for the third consecutive week, the sources said. The CPC calculates its fuel prices based on a weighted oil price formula, which comprises 70 percent Dubai crude and 30 percent Brent crude. Greece is scheduled to hold a referendum on Sunday for its people to decide whether they will accept the conditions set by the country's creditors. There have been rising fears that if the Greek people say no, the debt-ridden European county would exit the eurozone, which would affect global financial markets and the world's economy. In addition, higher oil stockpiles in the U.S. caused international crude oil prices to drop Wednesday to a two-week low before recovering to some extent. According to a report released by the U.S. Energy Information Administration, the country's oil inventories rose by 2.4 million barrels last week, the first increase in nine weeks. West Texas Intermediate crude for August contracts fell 0.44 percent in New York overnight, and dropped 4.5 percent for the week, while Brent August crude in London rose 0.1 percent overnight but fell 2 percent for the week. According to the CPC website, the average price of a barrel of crude under its weekly floating price formula stood at US$60.85 as of July 2, down from US$61.36 the previous week. If the price reduction is implemented next week as expected, prices at the pump will fall to NT$23.60 per liter for super diesel, NT$25.5 per liter for 92 octane unleaded gasoline, NT$27.0 per liter for 95 octane unleaded gasoline and NT$29.0 per liter for 98 octane unleaded gasoline. The CPC is scheduled to announce the fuel price adjustments Sunday at noon. (By Lin Meng-ju and Frances Huang)


Updated : 2021-09-26 12:05 GMT+08:00