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Domestic fuel prices to see fifth price hike in six weeks

Domestic fuel prices to see fifth price hike in six weeks
Taipei, May 22 (CNA) State-run oil refiner CPC Corp. Taiwan announced Sunday that it will increase gasoline and diesel prices in the coming week, the fifth price hike in six weeks. The price hike reflected increases in global crude prices pushed higher by reductions in oil output because of instability in Nigeria and a massive wildfire in Canada, according to CPC. CPC adjusts its fuel prices once a week based on a weighted oil price formula that is comprised of 70 percent Dubai crude and 30 percent Brent crude and also considers the value of U.S. dollar. The price of crude oil based on the formula rose US$2.71 to US$46.36 per barrel last week from a week earlier, while the U.S. dollar strengthened against the Taiwan unit by NT$0.19 to NT$32.719, the company said. That will result in an increase of NT$0.7 per liter in gasoline prices, pushing 92 octane unleaded to NT$23.6 per liter, 95 octane unleaded to NT$25.1 per liter and 98 octane unleaded to NT$27.1 per liter. The price of super diesel, meanwhile, will rise by NT$0.8 per liter to NT$21.2 per liter. The new prices will take effect on midnight Sunday. On Saturday, CPC's smaller rival Formosa Petrochemical Corp. announced similar price hikes that will take effect at 1 a.m.
Monday. Formosa expects prices at gas stations it supplies to rise to NT$20.9 per liter for super diesel, NT$23.5 per liter for 92 octane unleaded, NT$25.0 per liter for 95 unleaded and NT$27.3 per liter for 98 unleaded. Both companies said actual prices at the pump will still be decided by the gas stations themselves, as some of them are run by franchisees or independent chains, such as National Petroleum Corp. (By Yang Su-min and Kay Liu)