CPC Corp. to raise gasoline, diesel prices again Monday

Taipei, March 28 (CNA) State-owned oil supplier CPC Corp., Taiwan said Saturday it will raise gasoline and diesel prices by NT$1.7 and NT$1.5 per liter, respectively, starting at midnight Monday, one week after its last price increase.

CPC cited higher global energy prices amid Middle East tensions as the main reason for the price hike.

After the adjustment, retail prices will be NT$32.4, NT$33.9 and NT$35.9 per liter for 92-, 95- and 98-octane unleaded gasoline, respectively, while premium diesel will cost NT$31 per liter, the company said.

CPC said that by Sunday, the company would have absorbed an estimated NT$6.99 billion (US$218.13 million) in fuel costs under its price stabilization mechanism since Feb. 28, in a bid to cushion the impact on consumers and industry while maintaining stable domestic prices.

The company said it hopes its efforts would lower the impact rising oil prices will have on the general public.

The company explained that under Taiwan's floating fuel price mechanism, gasoline and diesel prices should have risen by NT$10.9 and NT$13 per liter.

With CPC aiming to maintain the lowest prices among neighboring Asian countries, the company said it was providing subsidies of NT$2.3 per liter for gasoline and NT$5.6 for diesel.

Since international oil prices continue to surge with the blockade of the Strait of Hormuz, CPC said it will expand absorbing the price hikes for gasoline and diesel by NT$4.1 and NT$7, respectively, between Monday and April 5.

Furthermore, considering the government's program to stabilize the economy during the United States-Iran conflict, CPC said it will provide additional subsidies of NT$5.1 for gasoline and NT$4.5 for diesel to bring the total subsidized amount to NT$9.2 per liter for gasoline and NT$11.5 for diesel next week.