CPC to raise domestic gasoline, diesel prices next week

Taipei, July 25 (CNA) State-owned oil supplier CPC Corp., Taiwan, announced Saturday it will raise domestic gasoline and diesel prices by NT$0.7 (US$0.02) and NT$0.5 per liter next week, respectively, in response to a spike in international crude oil prices amid escalating tensions in the Middle East.

CPC said in a statement that it will increase prices to NT$30.5, NT$32.0 and NT$34.0 per liter for 92-, 95-, and 98-octane unleaded gasoline, respectively, from midnight on Monday through Aug. 2.

The recommended price for premium diesel will rise to NT$29.3 per liter during the same period, CPC said.

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 rose to US$90.08 per barrel this week, up from US$78.82 last week.

A weakening Taiwan dollar also increased CPC's crude purchasing costs, according to the oil supplier.

Despite the latest decision to raise domestic fuel prices, CPC will still incur losses of NT$2.3 per liter from gasoline sales and NT$3.6 per liter from diesel sales, the oil supplier said.

Since the war in the Middle East broke out at the end of February, CPC estimates it will have absorbed NT$15.71 billion in losses as of Sunday by not reflecting the full increase of international crude oil costs in local fuel prices to ease inflationary pressure as part of the government's price stabilization measures.