CPC to leave gasoline, diesel prices unchanged for next week

Taipei, May 9 (CNA) State-run oil supplier CPC Corp., Taiwan, announced Saturday that it will leave domestic gasoline and diesel prices unchanged for next week.

To ease the impact resulting from a spike in international crude oil prices amid tensions in the Middle East, CPC has not changed domestic prices six weeks in a row.

In a statement, CPC said recommended retail prices will remain at NT$32.4 (US$1.03), NT$33.9 and NT$35.9 per liter for 92, 95 and 98-octane unleaded gasoline, respectively, from midnight Monday through May 17.

The recommended price for premium diesel will stay at NT$31.0 per liter, CPC said.

The price freeze seeks to keep fuel prices lower than those in neighboring markets, where governments have continued to subsidize gasoline and diesel purchases, it added.

The company expects to absorb NT$2.6 per liter for gasoline and NT$4.2 per liter for diesel next week, but the amount absorbed will decline this week due to lower average crude prices and a stronger Taiwan dollar.

Under CPC's floating price mechanism, which is based on a weighting of 70 percent Dubai crude and 30 percent Brent crude, the average international oil price fell to US$102.97 per barrel this week, down from US$110.90 last week.

The average exchange rate for the Taiwan dollar against the U.S. dollar stood at NT$31.508 this week, compared with NT$31.548 last week, according to CPC.

Since the U.S.-Israel war against Iran broke out in late February, the company has absorbed an estimated NT$14.18 billion in losses, CPC said.

CPC will continue to support government efforts to mitigate the impact of high crude prices on consumers and businesses, the company added.