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Domestic fuel prices to fall for third consecutive week

2018/11/04 16:54

CNA file photo

Taipei, Nov. 4 (CNA) Taiwan's domestic fuel prices will fall for the third consecutive week this week because of international factors, CPC Corp. Taiwan said Sunday.

The price of gasoline and diesel will be lowered by NT$0.3 (US$0.009) and NT$0.4 per liter, respectively, starting at midnight Sunday, the state-run oil company said.

That will bring down prices at its gas stations nationwide to NT$29.2 per liter for 92 octane unleaded, NT$30.7 per liter for 95 unleaded and NT$32.7 per liter for 98 unleaded, while super diesel will be sold for NT$27.3 per liter.

CPC Corp. adjusts its fuel prices every week based on changes in the international crude oil market, reflected in its oil pricing formula consisting of 70 percent Dubai crude and 30 percent Brent.

There had been expectations that global oil prices would rise this past week after the U.S. announced it would reimpose sanctions blocking the sale of oil by Iran -- effective Monday -- that had been lifted under the 2015 nuclear deal.

But oil prices actually slid because of increased output by Russia, the world's biggest supplier, and concerns that the trade war between the United States and China will slow economic growth and demand for oil.

CPC Vice President J.Z. Fang (方振仁) said supply and demand issues in the world market will continue to have the biggest impact on oil prices in the near term, but he did not expect Taiwan to be hurt by the U.S. sanctions on Iran because crude imported from Iran accounts for only 2 percent of the country's total imports.

Meanwhile, privately owned Formosa Petrochemical announced identical reductions to its fuel prices that will take effect at 1 a.m. Monday.

Prices at its gas stations will fall to NT$29.2 per liter for 92 octane unleaded, NT$30.6 per liter for 95 unleaded, NT$32.7 per liter for 98 unleaded and NT$27 per liter for super diesel.

(By Pan Tze-yu and Flor Wang)Enditem/ls