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Domestic fuel prices expected to stay unchanged next week

Domestic fuel prices expected to stay unchanged next week

Taipei, July 17 (CNA) Fuel prices in Taiwan are expected to stay unchanged next week reflecting mixed international crude oil prices as traders were still assessing the impact from a nuclear deal inked between Iran and the six powers led by the United States, market sources said Friday.
The state-owned CPC Corp., Taiwan is likely to announce that domestic gasoline and diesel prices are to remain the same, a move which will stop a four-week streak of gains. This week, CPC cut fuel prices by NT$0.8 (US$0.03) per litter after a plunge in international crude oil prices.
The CPC calculates its fuel prices based on a weighted oil price formula, which is comprised of 70 percent Dubai crude and 30 percent Brent crude.
Earlier this week, Iran and the U.S.-led powers struck a nuclear agreement to rein in the Middle East country's capability to produce nuclear weapons in return for the lifting of economic sanctions.
While Iran is expected to be allowed to release more crude oil into the market, many analysts in the market tend to believe that the supply increase will not affect the market until 2016.
Overnight, August West Texas Intermediate crude oil, the benchmark in the U.S. market, fell 1 percent to settle at US$50.91 a barrel in New York, the lowest level since April 9.
However, August Brent crude prices on London's ICE Futures exchange rose 0.8 percent to end at US$57.51 per barrel after a power outage shut down the largest oil field in the United Kingdom.
According to the CPC website, the average price of a barrel of crude under its weekly floating price formula stood at US$56.72 as of July 15, slightly lower than US$56.96 seen in the previous week.
If the price reductions are implemented next week as expected, prices at the pump will stay unchanged at NT$22.70 per liter for super diesel, NT$24.70 per liter for 92 octane unleaded gasoline, NT$26.20 per liter for 95 octane unleaded gasoline and NT$28.20 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 : 2021-09-21 04:04 GMT+08:00