TAIPEI (Taiwan News) — Despite rising crude prices due to tensions in the Middle East, CPC Corporation and Formosa Petrochemical cut gas and diesel prices in Taiwan.
State-run CPC was the first to implement lower prices at midnight on Sunday (Oct. 6), lowering gas and diesel prices by NT$0.1 (US$0.0031) and NT$0.2 per liter, respectively. CPC’s most popular fuel, 95-octane unleaded, is now priced at NT$30.5 per liter, per CNA.
Formosa Petrochemical implemented identical prices to CPC, which went into effect at 1 a.m. Monday.
CPC calculates gas and diesel prices based on weekly changes in crude oil prices. A weighted formula uses major crude oil indexes, 70% Dubai crude oil, and 30% Brent crude oil.
CPC's pricing mechanism also accounts for currency fluctuations. Based upon these changes and an uptick in crude prices, gas and diesel prices should have increased by NT$0.6 and NT$0.7 per liter, respectively.
However, a government initiative to stabilize oil prices to prevent inflation and a directive to keep oil prices lower than neighboring Asian countries and regions (Japan, South Korea, and Hong Kong), led to the national stabilization fund to absorb the gas and diesel price increase and offer a price cut for consumers and businesses.
In the first eight months of 2024, CPC incurred losses of NT$21.94 billion due to the government directive to stabilize gas prices and hinder inflation.