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Formosa Petrochemical to cut fuel prices ahead of CPC, again

Formosa Petrochemical to cut fuel prices ahead of CPC, again

Taipei, Oct. 24 (CNA) Formosa Petrochemical Corp. (???), a private gasoline supplier in Taiwan, said Saturday that it has decided to cut domestic fuel prices by NT$0.6 (US$0.03) and NT$0.7 per liter for gasoline and diesel, respectively, effective 1 a.m. on Sunday. It will be the second consecutive weekly price cut for Formosa Petrochemical ahead of an expected price reduction by rival state-owned CPC Corp., Taiwan (??), which is scheduled to announce its price adjustments at noon on Sunday, effective on Monday. Since February, Formosa Petrochemical, one of the subsidiaries of conglomerate Formosa Plastics Group (????), has adopted a strategy in which the gasoline supplier tends to cut prices earlier than CPC when fuel prices trend lower. The NT$0.6 price cut announced by Formosa Petrochemical was steeper that an earlier market estimate after international crude oil prices continued to trend lower on Friday following a brief mild technical rebound Thursday since market sentiment remained overshadowed by fears of a supply glut, market sources said. Worries over an oversupply have been raised by a report released by the U.S. Energy Information Administration (EIA) on Wednesday, which showed an increase last week in U.S. crude oil inventories by eight million barrels, the sources said. China, the second largest economy in the world, surprised the market by announcing an interest rate cut on Friday in a bid to stimulate its slowing economy, but concerns over slowing global demand for oil remained, which led to a decline in crude oil prices overnight, the sources added. The latest rate cut in China prompted the U.S. dollar to move higher and a stronger greenback placed more downward pressure on international crude oil prices, according to the sources. On Friday, West Texas Intermediate crude contract ended 1.7 percent at US$44.60 a barrel in New York, while the global Brent benchmark closed down 0.2 percent at US$47.99 per barrel in London. After the price cut goes into effect, prices at the pump for Formosa Petrochemical's gas stations islandwide will fall to NT$20.1 per liter for super diesel, NT$22.5 per liter for 92 octane unleaded gasoline, NT$24 per liter for 95 octane unleaded gasoline and NT$26.3 per liter for 98 octane unleaded gasoline. CPC will likely to cut domestic fuel prices by about NT$0.6 per litter so that a driver who fills up the tank of his car by adding 50 liters of gasoline is expected to save about NT$30. (By Pan Chi-i, Huang Chiao-wen, and Frances Huang)


Updated : 2021-09-20 09:51 GMT+08:00