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Formosa Petrochemical to raise fuel prices next week

2017/09/23 19:13:20

CNA file photo

Taipei, Sept. 23 (CNA) Formosa Petrochemical Corp. (台塑石化), a privately owned fuel supplier, said Saturday it will raise domestic gasoline and diesel prices next week citing continuous hikes in the price of international crude oil.

The company said it will increase its gasoline price by NT$0.3 (US$0.009) per liter and diesel price by NT$0.4 (US$0.013) per liter, effective from 1 a.m. Monday.

After the adjustment, prices at Formosa Petrochemical gas stations islandwide will rise to NT$22.3 per liter for super diesel, NT$24.8 per liter for 92 octane unleaded, NT$26.2 per liter for 95 unleaded and NT$28.3 per liter for 98 unleaded, the company said in a statement.

Formosa Petrochemical said the increase in crude oil prices this past was caused by market expectations that the Organization of the Petroleum Exporting Countries (OPEC) and other oil exporters would further extend an existing deal on production cuts.

Under the current deal, OPEC and 11 non-member countries have agreed to cut output by 1.8 million barrels a day until the end of the first quarter of 2018 and the proposal will extend that deal.

A decline in oil product inventories seen in the United States and the lower-than-expected growth in its crude oil inventory also boosted the international crude oil price, Formosa Petrochemical said.

This is the fifth consecutive week Formosa Petrochemical has raised fuel prices.

The company's main competitor, state-owned CPC Corp., Taiwan (中油), is expected to announce a similar price hike at noon on Sunday, to take effect 12 hours later.

(By Chen Chien-chung and Romulo Huang)