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Formosa Petrochemical announces fuel price hike for next week

2017/11/11 18:13:34

Taipei, Nov. 11 (CNA) Formosa Petrochemical Corp. (台塑石化) said Saturday that it has decided to raise its domestic gasoline and diesel prices for next week on the back of a spike in international crude oil prices this week.

Crude prices were boosted largely by political tensions in the Middle East, while a rise in the rig count in the U.S. market capped the upturn. As a result, Formosa Petrochemical announced a hike of NT$0.6 (US$0.0199) per liter for gasoline and a rise of NT$0.7 per liter for diesel, effective from 1 a.m. Monday.

It was the fourth consecutive week Formosa Petrochemical has raised its domestic fuel prices.

After the latest price adjustments, prices at Formosa Petrochemical gas stations islandwide will rise to NT$24.0 per liter for super diesel, NT$26.4 per liter for 92 octane unleaded, NT$27.8 per liter for 95 unleaded and NT$29.9 per liter for 98 unleaded, the company said.

Fears over a global supply glut have been reduced to some extent after a move by Saudi Arabia's Crown Prince Mohammed bin Salman to detain dozens of high-profile figures last weekend during an anti-corruption investigation, which is said to consolidate the crown prince's power.

In addition, a missile attack launched by Yemen's Houthi militias against Saudi Arabia last Saturday also boosted tensions in the Middle East, sending crude prices higher. Iran has been accused by Saudi Arabia of standing behind the missile attack.

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

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$62.36 per barrel, up US$2.98 per barrel from the previous week.

(By Tien Yu-pin and Frances Huang)