TAIPEI (Taiwan News) — State-run CPC Corp. announced Saturday that domestic gasoline and diesel prices will decrease next week, reflecting lower international oil prices and a stronger Taiwan dollar.
Beginning Monday, gasoline prices will fall by NT$1 (US$0.03) per liter, while diesel prices will drop by NT$0.70 per liter, according to CPC’s floating fuel pricing mechanism. The company said international energy markets eased this week amid expectations of a memorandum of understanding between the US and Iran and an agreement to enter a 60-day negotiation period, per CNA.
Developments surrounding the Strait of Hormuz, a key shipping route responsible for about one-fifth of global oil and natural gas supplies, also contributed to lower market pressure. CPC said the situation in the Middle East continues to warrant close monitoring.
Under the pricing formula, the average international crude oil price fell to US$76.39 per barrel this week from US$90.12 the previous week. A strengthening Taiwan dollar also helped reduce crude oil import costs.
For the period from Monday through Sunday, CPC set reference retail prices at NT$31.4 per liter for 92 unleaded gasoline, NT$32.9 for 95 unleaded gasoline, NT$34.9 for 98 unleaded gasoline, and NT$30.3 for premium diesel.
CPC said the government’s fuel price stabilization mechanism continues to shield consumers from sharp fluctuations in global energy markets. Since military strikes by the US and Israel against Iran earlier this year, the company has absorbed an estimated NT$17.7 billion in losses from domestic gasoline and diesel sales, per CNA.
The company added that it also considered regional pricing trends, noting that neighboring countries such as Japan and South Korea did not lower fuel prices this week.
In addition, the government’s expanded commodity tax reductions continue to absorb NT$3.70 per liter for gasoline and NT$2.10 per liter for diesel, helping keep domestic fuel prices lower than they otherwise would be.
