CPC, Formosa cut gasoline, diesel prices

Taipei, May 4 (CNA) State-run CPC Corp. Taiwan and privately owned Formosa Petrochemical Corp. (FPC) both announced fuel price cuts on Sunday, lowering gasoline and diesel prices by NT$1.1 (US$0.036) and NT$1.4 per liter, respectively.

As a result, starting Monday, gasoline prices at CPC and Formosa stations will drop to NT$27.2, NT$28.7 and NT$30.7 per liter for 92-, 95- and 98-octane unleaded gasoline, respectively. Premium diesel will fall to NT$25.7 per liter at CPC stations and NT$25.5 at Formosa pumps.

CPC adjusts fuel prices weekly based on a weighted formula that factors in changes in crude oil prices -- 70 percent Dubai crude and 30 percent Brent crude.

CPC's pricing mechanism also accounts for currency fluctuations.

The state-run refiner said the price cuts were prompted by a stronger local currency and a sharp drop in global crude oil prices.

Meanwhile, Formosa Petrochemical said the recent sharp drop in crude oil prices was driven by market fears that the prolonged U.S.-China trade war could trigger a global recession and weaken demand.

The decline was also attributed to Saudi Arabia's plan to increase production capacity to expand its market share.

Brent crude fell to US$60.00 per barrel last Wednesday, its lowest level in four years, according to international media reports.