Gasoline prices to fall by NT$0.10 this week
Taipei, May 26 (CNA) Taiwan's two major fuel suppliers on Sunday announced a reduction in fuel prices for this week, citing a drop in international crude oil prices as a result of the escalating trade frictions between the United States and China.
The state-run oil refiner CPC Corp., Taiwan said on its website that its gasoline prices will be lowered by NT$0.10, while its diesel prices will be cut by NT$0.20, with effect from midnight Sunday.
With the adjustments, retail prices at CPC gas stations will be NT$28.80 (US$0.91) per liter for 92 octane unleaded, NT$30.30 per liter for 95 octane unleaded, NT$32.30 per liter for 98 octane unleaded, and NT$26.80 per liter for super diesel.
The prices were being lowered as global crude oil prices fell this past week amid a growing U.S.-China trade dispute and an increase in U.S. commercial crude inventories, the company said.
As a result, crude dropped to US$70.06 per barrel last week in CPC's weighted oil price formula, down from US$71.79 a week earlier.
CPC said that if it had adjusted its prices this week in line with the standard formula and pricing guidelines, gasoline would have remained unchanged and diesel prices would have dropped by NT$0.10 per liter.
Under a price stabilization mechanism, however, if the price of the benchmark 95 unleaded gasoline rises to between NT$30 and NT$32.4 per liter in CPC's weekly weighted price formula, the company absorbs 25 percent of the weekly price increase, and consumers shoulder the remaining 75 percent.
That justified the NT$0.10 per liter reduction in gasoline prices and the NT$0.20 drop in diesel prices, the company said.
As a result of the pricing guidelines and the price stabilization mechanism, CPC said, it has absorbed losses of more than NT$1.623 billion in the first four months this year.
Meanwhile, CPC's main competitor, privately owned Formosa Petrochemical Corp.(FPCC), announced identical price adjustments on Sunday, which will take effect at 1 a.m. Monday.
After the adjustments, prices at FPCC gas stations nationwide will be NT$28.80 per liter for 92 octane unleaded, NT$30.20 per liter for 95 unleaded, NT$32.30 per liter for 98 unleaded, and NT$26.60 per liter for super diesel, the company said.
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