CPC to freeze fuel prices over Lunar New Year holiday

Taipei, Feb. 15 (CNA) State-run oil refiner CPC Corp., Taiwan announced Sunday that gasoline and diesel prices at its stations across Taiwan will remain unchanged over the Lunar New Year holiday, effective midnight Sunday.

The prices will be capped at NT$27.2 (US$0.86) per liter for 92-octane, NT$28.7 for 95-octane, NT$30.7 for 98-octane gasoline, and NT$26.6 for premium diesel from Feb. 16-23, the company said.

CPC said international oil prices rose this week due to the Northern Hemisphere's winter fuel demand and the U.S. February consumer confidence index hitting a record high.

According to the weekly fuel price adjustment formula, gasoline and diesel prices would normally increase by NT$1.2 and NT$0.4 per liter, respectively.

However, CPC said it would absorb the increases -- NT$1.2 for gasoline and NT$0.3 for diesel -- to keep domestic prices below those of neighboring Asian countries.

Under the government's Lunar New Year price stabilization policy, diesel absorbs an additional NT$0.1, keeping both fuels unchanged.

Since the start of the year, CPC has absorbed around NT$14 million in fuel price increases to help stabilize domestic costs.