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Fuel prices to be kept unchanged this week

2018/09/23 18:50:31

CNA file photo

Taipei, Sept. 23 (CNA) Domestic gasoline and diesel prices will not be adjusted this week despite a rise in international oil prices because of Taiwan's policy to keep fuel prices stable, state-owned oil refiner CPC Corp. Taiwan said Sunday.

Fuel prices at CPC gas stations for the coming week will remain at NT$29.5 per liter for 92 octane unleaded, NT$31 per liter for 95 unleaded, NT$33 per liter for 98 unleaded and NT$27.7 per liter for super diesel, according to the company.

CPC normally adjusts its fuel prices once a week based on movements in international crude oil prices.

The company calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude; and based on that formula, the average oil rose US$0.46 this week to US$77.44, according to the CPC website.

That would have justified a NT$0.4 (US$0.013) increase per liter of gasoline or diesel under the company's floating pricing mechanism, CPC Vice President Huang Jen-hung (黃仁弘) said, to push the price of benchmark 95 octane unleaded to NT$31.4 per liter.

Under the government's fuel price stabilization mechanism that took effect in May, however, the company must absorb 25 percent of any amount above NT$30 per liter after a price is adjusted, in this case 25 percent of NT$1.4, which comes out to NT$0.4 after rounding, Huang said.

Thus, the anticipated increase of NT$0.4 per liter will be completely absorbed by CPC, Huang said, helping keep fuel prices stable during the Mid-Autumn Festival holiday on Monday.

Privately owned Formosa Petrochemical also announced that it will not adjust its fuel prices for the coming week.

That means prices at Formosa Petrochemical gas stations nationwide will remain at NT$27.4 per liter for super diesel, NT$29.5 per liter for 92 octane unleaded, NT$30.9 per liter for 95 unleaded and NT$33 per liter for 98 unleaded, the company said. (Liao Yu-yang, Wei Shu and William Yen)