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Formosa Petrochemical to cut fuel prices next week

2017/12/09 18:33:40

Taipei, Dec. 9 (CNA) Formosa Petrochemical Corp., a private fuel supplier, said Saturday that it will lower its domestic gasoline and diesel prices next week in the wake of a decline in international crude oil prices this week.

In a statement, Formosa Petrochemical said international crude prices have dropped amid renewed concerns over a global supply glut after a rise in crude output and an increase in gasoline inventories in the U.S. market.

As a result, the fuel supplier said, it will cut its gasoline prices by NT$0.1 (US$0.0033) per liter and its diesel prices by NT$0.2 per liter, effective from 1 a.m. on Monday.

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

After the latest adjustments, prices at Formosa Petrochemical gas stations islandwide will fall to NT$23.6 per liter for super diesel, NT$26.1 per liter for 92 octane unleaded, NT$27.5 per liter for 95 unleaded, and NT$29.6 per liter for 98 unleaded, the company said.

Following an increase in U.S. gasoline stocks by 6.8 million barrels last week, there has been uncertainty over a nine-month extension of a production reduction agreement among the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers, which was due to expire in March 2018.

In addition, crude output in the U.S. market rose last week by 25,000 barrels per day to 9.71 million barrels per day, which also eroded the effects of the agreement.

However, rising demand from China has prevented crude oil prices from falling further, market analysts said. According to China's General Administration of Customs, the country's oil imports has increased to 9.01 million barrels per day, the second highest level on record.

With the fall in crude oil prices, Formosa Petrochemical's main competitor, state-owned CPC Corp., Taiwan, 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 CPC's website at US$61.07 per barrel, down US$0.74 per barrel from the previous week.

(By Tien Yu-pin and Frances Huang)