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Domestic fuel prices may go up slightly next week

Domestic fuel prices may go up slightly next week

Taipei, June 3 (CNA) Domestic gasoline and diesel prices may rise slightly or remain unchanged next week as international crude oil prices have bounced back from a drop earlier in the week, market sources said Friday.

Based on the crude oil price fluctuations, state-owned CPC Corp. Taiwan's may retain its gasoline and diesel prices or raise them by NT$0.1 (US$0.003) per liter next week, the sources said.

CPC did not touch its gasoline prices this week, but cut diesel prices by NT$0.1 per liter.

The state-run company calculates its weekly fuel prices based on a weighted oil price formula that comprises 70 percent Dubai crude and 30 percent Brent crude.

The weekly floating price formula showed that oil prices averaged US$46.61 per barrel as of June 2, up from US$46.46 the previous week, according to CPC's website.

Before the Organization of Petroleum Exporting Countries (OPEC) met in Vienna on Thursday to decide whether to cap output, sentiment toward the global oil market had turned cautious, dragging down crude prices, the sources said.

The OPEC meeting failed to reach an agreement on production cap with Saudi Arabia, the dominant power in the group, saying any "artificial ceiling" would be premature.

The failure to set a production ceiling led to drop in crude oil prices Thursday, but the market rebounded later on U.S. oil inventory data.

As a result, August deliveries of Brent crude, the international benchmark, rose past US$50 per barrel overnight on hopes that crude prices will continue to increase.

If CPC implements a price hike on Monday, prices at the pump will range between NT$21.1 and NT$21.2 per liter for super diesel, NT$23.6 and NT$23.7 per liter for 92 octane unleaded gasoline, NT$25.1 and NT$25.2 per liter for 95 octane unleaded, and NT$27.1and NT$27.2 per liter for 98 unleaded, according to the sources.

The oil supplier is scheduled to announce its price adjustments at noon Sunday and put them into effect at midnight. (By Lin Meng-ju and Frances Huang)

Updated : 2021-08-02 13:21 GMT+08:00