CPC to leave domestic gasoline, diesel prices unchanged next week

Taipei, Aug. 29 (CNA) State-owned oil supplier CPC Corp., Taiwan said Saturday it will leave domestic gasoline and diesel prices unchanged next week.

The decision marks the fifth consecutive week that CPC has maintained domestic crude oil prices at the same levels under the government's price stabilization measures.

In a statement, CPC said retail prices will remain at NT$30.5 (US$0.96), NT$32.0 and NT$34.0 per liter for 92, 95 and 98-octane unleaded gasoline, respectively, from midnight Monday through Sept. 6.

The retail price of premium diesel will also remain at NT$29.3 per liter during the same period, CPC said.

CPC said its floating price mechanism, based on a weighted average of 70 percent Dubai and 30 percent Brent crude, showed that the average international crude oil price fell from US$93.01 per barrel last week to US$91.56 this week, reflecting lower international crude oil prices amid rumors of a possible deal to reopen the Strait of Hormuz.

Meanwhile, a stronger Taiwan dollar against the U.S. dollar also reduced the oil supplier's purchasing costs.

However, CPC is expected to absorb a loss of NT$2.3 per liter on gasoline sales and NT$3.6 per liter on diesel sales next week.

CPC estimated that by Sunday it will have absorbed NT$18.03 billion in losses since the war in the Middle East started, by not fully passing on higher international crude oil costs on to consumers and businesses to ease domestic inflationary pressure.