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Diesel prices in Taiwan expected to rise next week

2017/12/01 13:32:40

Taipei, Dec. 1 (CNA) Domestic diesel prices are likely to increase next week, while gasoline prices are expected remain unchanged, as international crude oil prices continue to fluctuate, market sources said Friday.

A decision by major oil producers to extend an output reduction agreement mitigated worries over a global supply glut, which helped to keep the crude price fluctuations in a narrow range this week, the sources noted.

Under such circumstances, state-owned CPC Corp. Taiwan is expected to raise diesel prices by NT$0.1 (US$0.0033) per liter next week but leave its gasoline prices unchanged, the sources said.

This week, CPC raised its gasoline and diesel prices by NT$0.1 per liter.

The company is scheduled to announce its prices for next week at noon on Sunday and put them into effect 12 hours later.

If CPC adjusts its fuel prices as forecast, prices at the pump will rise to NT$24.1 per liter for super diesel, while prices for 92 octane unleaded gasoline, 95 octane unleaded and 98 unleaded are expected to remain at NT$26.2, NT$27.7 and NT$29.7 per liter, respectively, the sources said.

Currently, the price of the benchmark 95 octane unleaded is at its highest level in almost three years.

On Thursday, the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers, led by Russia, agreed to extend their ongoing production reduction agreement until the end of 2018.

The extension from the March 2018 termination date helped boost international crude prices overnight, which in turn led the global markets higher as worry over a crude oversupply faded.

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.

Based on the slight fluctuations in international crude oil prices, CPC has calculated the average price of crude oil at US$61.79 per barrel this week, an increase of US$0.35 from a week earlier, according to its website.

(By Huang Ya-chuan and Frances Huang)