CPC to cut domestic gasoline, diesel prices next week

Taipei, June 20 (CNA) State-owned oil supplier CPC Corp., Taiwan, announced Saturday it will cut domestic gasoline and diesel prices by NT$1.0 (US$0.03) and NT$0.7 per liter, respectively, next week, reflecting reduced upward pressure on international energy prices.

Ending an 11-week streak of leaving its retail fuel prices unchanged amid military conflicts in the Middle East, CPC said it would recommend that retail prices fall to NT$31.4, NT$32.9 and NT$34.9 per liter for 92, 95, and 98-octane unleaded gasoline, respectively, from midnight on Monday through June 28.

In addition, the recommended price for premium diesel will also fall to NT$30.3 per liter during the same period, CPC said.

The announcement followed the government's price stabilization measures that saw CPC absorbing an estimated NT$17.7 billion in losses from sales of domestic gasoline and diesel since the United States and Israel launched an attack on Iran at the end of February.

Nevertheless, CPC said international crude prices fell this week after the U.S. and Iran announced plans to sign a memorandum of understanding (MOU) to extend their ceasefire for 60 days and open the Strait of Hormuz, the choke point for about one-fifth of the world's oil and natural gas supply.

Under CPC's floating price mechanism, the average international oil price fell to US$76.39 per barrel this week, down from US$90.12 last week.

According to CPC, a stronger Taiwan dollar also helped to ease CPC's financial burden on crude oil prices. The Taiwan dollar averaged NT$31.572 against the U.S. dollar this week, compared with NT$31.623 last week.