Gasoline prices in Taiwan rise for eighth consecutive week

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Taiwan CPC truck

Taiwan CPC truck (By Wikimedia Commons)

TAIPEI (CNA)-- In order to recoup some of the losses incurred over the past few weeks, state-run oil refiner CPC Corp., Taiwan will raise gasoline prices this week for the eighth week in a row, for an accumulated increase of NT$2.30 per liter over the same period.

Effective midnight Sunday, the price of CPC gasoline products will increase by NT$0.20 per liter, while diesel will fall by NT$0.50 per liter, the company announced.

With the adjustments, retail prices at CPC gas stations will be NT$28.80 (US$0.92) per liter for 92 octane unleaded, NT$30.30 per liter for 95 octane unleaded, NT$32.30 per liter for 98 octane unleaded, and NT$26.80 per liter for super diesel.

International markets have seen price movements in the wake of U.S. efforts to step up its embargo against Iranian crude exports, and Washington's call on the Organization of the Petroleum Exporting Countries (OPEC) to increase production, resulting in a drop in international prices, the CPC explained.

Based on calculations using a weighted oil price formula composed of 70 percent Dubai crude and 30 percent Brent crude (7D3B), the CPC said, crude prices last week fell to US$72.21 per barrel from US$73.59 the previous week, which would have resulted in a 2.53 percent rollback in CPC fuel prices.

However, due to a need to recover losses resulting from limited price increases for consumers over the past few weeks, the company has increased gas prices, the CPC said.

Because of guidelines that cap oil prices at par with the lowest price in the markets of Taiwan's main industrial competitors -- Japan, South Korea, Hong Kong and Singapore, the CPC has had to absorb some of the increase for several weeks.

The CPC said it has absorbed more than NT$1.67 billion in the first four months this year.

Meanwhile, privately-owned Formosa Petrochemical Corp. (FPCC), CPC's main competitor, announced on Sunday identical price adjustments for its products, effective 1 a.m. Monday.

Prices at FPCC gas stations will be NT$28.80 per liter for 92 octane unleaded, NT$30.20 per liter for 95 octane unleaded, NT$32.30 per liter for 98 octane unleaded, and NT$26.60 per liter for diesel.