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Domestic fuel prices could rise next week

Domestic fuel prices could rise next week

Taipei, Sept. 25 (CNA) Fuel prices in Taiwan are likely to rise next week as a weaker Taiwan dollar has boosted crude oil purchasing costs, market sources said Friday. The weakness of the Taiwan dollar offset the impact of falling prices of international crude oil in the world market, paving the way for a hike in domestic fuel prices, the sources said. State-owned CPC Corp. Taiwan (??) could hike gasoline and diesel prices by NT$0.1 (US$0.03) per liter next week after this week's reduction of NT$0.4 per liter, the sources said. The expected hike will stop a two-week downward streak in domestic fuel prices. The CPC calculates its fuel prices based on a weighted oil price formula that comprises 70 percent Dubai crude and 30 percent Brent crude to decide its weekly price adjustments. Amid concerns over the Taiwan economy, the local central bank has intensified its efforts to make the Taiwan dollar cheaper at a time when other central banks in the region have escalated a currency depreciation competition to grasp a higher share in the global market, they said. The Taiwan dollar closed below the NT$33 mark against the U.S. dollar at NT$33.260 Thursday, a new low in six and a half years. It was the second consecutive session for the local central bank to keep the currency below that level. In the past four sessions, the Taiwan dollar depreciated 1.83 percent against the greenback, making crude oil purchases more expensive for CPC, the sources said. Crude oil prices fell earlier this week due to worries over the global economy after China, the second-largest economy in the world, reported disappointing manufacturing activity data for September. The poor China data raised fears over a supply glut. Overnight, crude oil prices recovered to some extent, with West Texas Intermediate November delivery closing up 1 percent at US$44.91 per barrel in New York, and Brent, the global benchmark, ending up 0.9 percent at US$48.17 per barrel in London. CPC's weekly floating price formula stood at US$45.31 as of Sept. 24, little changed from the previous week, according to its website. If CPC implements the expected increases next week, prices at the pump will rise to NT$20.60 per liter for super diesel, NT$22.8 per liter for 92 octane unleaded gasoline, NT$24.3 per liter for 95 octane unleaded and NT$26.3 per liter for 98 octane unleaded. The state-owned oil company is scheduled to announce the price adjustments at noon Sept. 27. (By Huang Chiao-wen and Frances Huang)


Updated : 2021-01-21 07:53 GMT+08:00