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Local fuel prices expected to go lower next week

Local fuel prices expected to go lower next week

Gasoline and diesel prices in Taiwan are expected to drop next week because of a decline in international crude oil prices and worry over an oversupply, market sources said Thursday.

The sources estimated that prices of diesel and gasoline products at pumps operated by the state-owned oil supplier, CPC Corp. Taiwan, will drop NT$0.7 (US$0.02) per liter each.

If the prediction comes to pass, starting Dec. 14, the CPC price of 92 octane unleaded will reach NT$20.9 per liter, that of 95 octane unleaded will fall to NT$22.4 per liter, and that of 98 octane unleaded will dip to NT$24.4 per liter.

The price of super diesel is expected to drop to NT$18.6 per liter, the lowest level since the financial crisis in 2008, the sources said. Almost all the fuel prices may fall to their lowest levels since Jan. 3, 2009 when the prices of 92, 95 and 98 octane unleaded were NT$20.3, NT$21 and NT$22.7 per liter, respectively, and that of super diesel was NT$17 per liter.

Following a decision by the Organization of Petroleum Exporting Countries (OPEC) not to cut production last week, Brent, the global benchmark, dropped to US$40 per barrel, a new low in seven years. 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 (7D3B).

As of Wednesday, the average 7D3B oil price dipped to US$37.62 per barrel, down US$3.01 from the previous week's US$40.63 per barrel. The value of the Taiwan dollar stood at NT$33.007 against the greenback, according to data on the CPC website. The company will release its new fuel prices at noon Sunday. (By Milly Lin and Evelyn Kao)

Updated : 2021-09-18 10:54 GMT+08:00