Back to list

Formosa Petrochemical announces fuel price hikes for next week

2018/02/24 18:40:49

Taipei, Feb. 24 (CNA) Formosa Petrochemical Corp., a private fuel supplier in Taiwan, said Saturday that it will raise its domestic gasoline and diesel prices for next week after international crude oil prices staged a rebound this week.

A surprise decline in crude oil inventories in the U.S. market and hopes that an existing production-cut agreement among oil producers will be extended boosted market sentiment and sent crude prices higher, Formosa Petrochemical said.

As a result, the Taiwanese fuel supplier announced a NT$0.4 (US$0.014) per liter increase for both gasoline and diesel, effective from 1 a.m. Monday, ending three straight weeks of price reductions.

Both Formosa Petrochemical and its main competitor, state-owned CPC Corp. Taiwan, adjust their fuel prices on a weekly basis.

After the latest adjustments, prices at Formosa Petrochemical gas stations islandwide will rise to NT$23.7 per liter for super diesel, NT$26.2 per liter for 92 octane unleaded, NT$27.6 per liter for 95 unleaded and NT$29.7 per liter for 98 unleaded, Formosa Petrochemical said.

CPC Corp. is likely to announce similar price adjustments on Sunday that will take effect at midnight.

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 latest fluctuations in international crude oil prices, CPC's average price of crude oil was calculated at US$62.65 per barrel as of Thursday, an increase of US$1.62 from a week earlier, according to its website.

International crude prices rose after an unexpected fall in U.S. inventories, caused by an increase in exports.

A U.S. Energy Information Administration (EIA) report showed crude stockpiles falling by 1.6 million barrels last week, catching traders off guard because a 1.8 million barrel increase had been expected.

Analysts said energy traders were also hopeful that the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members will extend the ongoing production reduction accord beyond the current deadline at the end of this year.

Tensions in the Middle East also drove crude prices higher after Israeli Prime Minister Benjamin Netanyahu said on Sunday that his country could act directly against Iran itself and not just its allies in the Middle East, after border incidents in Syria, Formosa Petrochemical said.

(By Chang Chien-chung and Frances Huang)