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Taiwan gasoline prices to rise on New Year’s Day

Prices to reach highest level since Dec. 2014

CPC announced gasoline price hikes for January 1.

CPC announced gasoline price hikes for January 1. (CNA photo)

TAIPEI (Taiwan News) – The New Year is likely to begin on a sour note for motorists as CPC Corporation, Taiwan (中油) announced it would hike gasoline prices to their highest levels in three years.

While the increases would only range between 30 and 40 New Taiwan cents, the new prices would be the highest since December 2014, with unleaded 95 gasoline breaking through the barrier of NT$28 (US$0.94) a liter, the Central News Agency reported.

The new rates as announced by CPC are NT$26.7 for a liter of unleaded 92, NT$28.2 for unleaded 95, NT$30.2 for unleaded 98 and NT$24.6 for super diesel.

According to the formula CPC uses to calculate the prices of oil products for consumers, the average rise should amount to 2.35 percent. The oil company bases its calculations on a weighted oil price formula consisting of 70 percent Dubai crude oil and 30 percent Brent crude.

Over the past week, the formula showed a rise of US$2.01 from US$62.45 to US$64.46 a liter, CNA reported.

Reduced supply from an oil field in Europe’s North Sea and a pipeline explosion in Libya were reportedly key factors in triggering the increase.