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CPC to increase fuel prices in wake of Middle East tensions

2017/10/22 17:28:11

CNA file photo

Taipei, Oct. 22 (CNA) State-owned oil refiner CPC Corp., Taiwan (中油) said it will increase domestic gasoline and diesel prices by NT$0.2 (US$0.0066) and NT$0.3, respectively, per liter this week, starting at midnight Sunday, in wake of increased tensions in the Middle East.

After the adjustment, prices at CPC gas stations nationwide will be NT$22.9 per liter for super diesel, NT$25.1 per liter for 92 octane unleaded, NT$26.6 per liter for 95 unleaded and NT$28.6 per liter for 98 unleaded, the company said.

CPC said the price increase comes after growing tensions between the United States (US) and Iran in the wake of U.S. President Donald Trump's refusal to certify Tehran's compliance with a 2015 deal restricting the Middle Eastern country's nuclear program in exchange for sanctions relief.

In addition, an escalation in political tensions within Iraq has also increased the price of crude oil, impacting domestic gasoline prices, CPC said.

CPC calculates weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude and adjusts fuel prices upward or downward on a weekly basis based on movements in the weighted price.

Because of the increase in international crude prices in recent days, CPC's average price was calculated at US$56.26 per barrel this week, up US$1.25 from US$55.01 per barrel last week, according to its website.

(By Liao Yu-yang and William Yen)