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Formosa Petrochemical to raise fuel prices for next week

2017/10/21 19:01:52

Taipei, Oct. 21 (CNA) Formosa Petrochemical Corp. said Saturday that it will raise gasoline and diesel prices next week after international crude oil prices moved higher this week.

Rising tensions in the oil-rich Middle East pushed up crude oil prices, which eased concerns over a global supply glut to some extent, prompting Formosa Petrochemical to hike gasoline by NT$0.2 (US$0.0066) per liter and raise its diesel prices by NT$0.3 per liter, effective from 1 a.m. Monday.

This week, Formosa Petrochemical cut diesel prices by NT$0.1 per liter but left gasoline prices unchanged.

After the adjustments, prices at Formosa Petrochemical gas stations islandwide will rise to NT$22.6 per liter for super diesel, NT$25.1 per liter for 92 octane unleaded, NT$26.5 per liter for 95 unleaded and NT$28.6 per liter for 98 unleaded, the company said.

Amid political unease in the Middle East, Brent futures, the global bench market, finished up about 1 percent for this week.

Tensions between Iraq's central government and the semi-autonomous Kurdish region have escalated in recent days after the region voted almost unanimously to become an independent state in a controversial referendum late in September, market analysts said.

In addition, a decline in crude oil inventories in the U.S. also pushed crude prices higher during the week, analysts added.

According to a report released by the U.S. Energy Information Administration on Wednesday, U.S. crude inventories fell by 5.7 million barrels for the week to Oct. 13, steeper than an earlier market estimate of a decline of 3.9 million barrels.

Due to the higher crude prices, Formosa Petrochemical's main competitor, state-owned CPC Corp., Taiwan, is expected to announce similar price adjustments for next week at noon on Sunday, effective 12 hours later.

CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.

As of Thursday, the average price of crude oil was listed on its website at US$56.39 per barrel, up US$1.38 per barrel or 1.39 percent from a week earlier.

(By Frances Huang)