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Diesel prices could fall, but gasoline prices may stay flat next week

Diesel prices could fall, but gasoline prices may stay flat next week

In line with the seesaw fluctuations in international crude oil prices in recent sessions, domestic diesel prices could move lower but gasoline prices could stay stable next week, market sources said Friday.

Overnight, international crude oil prices staged a strong rebound on speculation that major oil suppliers will cut production, which recouped the losses posted in the last few trading sessions, the sources said.

They said that state-owned CPC Corp., Taiwan is likely to cut diesel prices by NT$0.1 (US$0.03), but is expected to leave gasoline prices unchanged for next week after a decision to hike diesel prices by NT$0.3 and raise gasoline prices by NT$0.2 for this week.

CPC calculates its weekly fuel prices based on a weighted oil price formula that is comprised of 70 percent Dubai crude and 30 percent Brent crude.

The global oil market got a boost overnight from high hopes that the Organization of the Petroleum Exporting Countries (OPEC) will decide to cut production in a meeting scheduled for Friday.

Initially, international crude oil prices bounced back in the wake of the news that Saudi Arabia, OPEC's most influential member, would propose in the Friday meeting that the oil cartel cut its daily production by 1 million barrels next year to rein in falling oil prices.

Before the speculation on the production cut by OPEC, international crude oil prices incurred losses earlier in the week amid lingering concerns over the impact resulting from a supply glut.

After the latest rebound, West Texas Intermediate crude prices for the month of January delivery closed up 2.9 percent at US$41.08 a barrel in New York. Brent, the global benchmark, rose 3.2 percent to close at US$43.84 a barrel in London on Thursday.

CPC's weekly floating price formula shows that oil prices averaged US$40.73 per barrel as of Dec. 3, down from US$41.21 the previous week, according to its website

If CPC implements the expected price adjustments next week, prices at the pump will stand at NT$19.4 per liter for super diesel, NT$21.7 per liter for 92 octane unleaded gasoline, NT$23.2 per liter for 95 octane unleaded and NT$25.2 per liter for 98 octane unleaded, according to the sources.

The state-owned oil company is scheduled to announce its price adjustments at noon Sunday, for them to take effect at midnight. (By Huang Chiao-wen and Frances Huang)

Updated : 2021-09-19 06:26 GMT+08:00