CPC, Formosa cut gasoline prices despite global crude oil hikes

Taipei, Oct. 6 (CNA) Taiwanese fuel suppliers CPC Corp. Taiwan and Formosa Petrochemical Corp. (FPC) both announced price cuts for gasoline on Sunday despite recent increases in global crude oil prices.

The two companies announced decreases of NT$0.1 (US$0.003) per liter for gasoline this week, which will result in prices at CPC pumps of NT$29 for 92-octane unleaded gasoline, NT$30.5 for 95-octane unleaded, and NT$32.5 for 98-octane unleaded.

FPC's prices will be identical to those of CPC Corp. The state-run CPC Corp.'s new prices take effect Sunday at midnight, while FPC takes effect at 1 a.m. Monday.

CPC adjusts its fuel prices weekly based on changes in crude oil prices, using a weighted oil price formula composed of 70 percent Dubai crude and 30 percent Brent crude.

Based on the formula, gasoline and diesel prices should have increased by NT$0.6 and NT$0.7 per liter, respectively, CPC Corp. said.

However, the state-run oil company has been required by the government to absorb most of the increases in crude oil prices rather than passing them on to consumers to prevent the higher costs from fueling inflation.

Per the government's directive, CPC has incurred losses of NT$21.94 billion in the first eight months of 2024.

Because of that approach, along with a government policy requiring Taiwan to have the lowest fuel prices among neighboring Asian countries, the company said it will absorb price hikes of NT$0.7 per liter for gasoline and NT$0.9 per liter for super diesel this week.

That will result in its super diesel price falling NT$0.2 to NT$27.5 per liter at CPC pumps, and FPC will also lower its price of super diesel by NT$0.2 per liter to NT$27.3.