Alexa
  • Directory of Taiwan

95 octane unleaded gasoline could fall below NT$25 per liter

95 octane unleaded gasoline could fall below NT$25 per liter

Taipei, Aug. 6 (CNA) Fuel prices in Taiwan could continue to trend lower next year after a further decline in international crude oil prices with the price of the benchmark 95 octane unleaded gasoline likely to fall below NT$25 (US$0.79) per liter, market sources said Thursday. Concerns over an increase in global supply prompted many commodity traders to turn more downbeat about the crude oil market outlook, in particular after Iran signed a nuclear agreement with six powers led by the United States in July, the sources said. The nuclear deal has paved the path for lifting economic sanctions against Iran to allow the Middle Eastern country to pump more oil into the global market, sending prices even lower, the sources said. The state-owned CPC Corp., Taiwan (??) is likely to announce a NT$0.7 (US$0.02) per liter reduction in the cost of gasoline and a NT$0.8 per liter drop in the price of diesel next week. It could be the third consecutive week for domestic fuel prices to fall. After the price cuts next week, it will be the first time for 95 octane unleaded gasoline to carry a price tag of less than NT$25 per liter since early February, when the price stood at NT$23.6, according to the CPC website. On Wednesday, West Texas Intermediate (WTI) crude futures in New York fell 1.3 percent to US$45.15 per barrel, the lowest level since mid-March. Brent crude in London, the global benchmark, dropped 0.8 percent to US$49.59 per barrel. In addition to the nuclear deal with Iran, the weakening crude oil prices also reflected fears of falling global demand at a time when the major economies, in particular China, showed signs of slowing down. Weaker demand is expected to exacerbate a supply glut. According to the CPC website, the average price of a barrel of crude under its weekly floating price formula stood at US$50.17 as of Aug. 5, down from US$53.27 the previous week. If the price reduction is implemented next week as expected, prices at the pump will fall to NT$21.2 per liter for super diesel, NT$23.4 per liter for 92 octane unleaded gasoline, NT$24.9 per liter for 95 octane unleaded gasoline and NT$26.9 per liter for 98 octane unleaded gasoline. CPC is scheduled to announce the price adjustments at noon on Sunday. (By Lin Meng-ju and Frances Huang)


Updated : 2021-09-27 15:51 GMT+08:00