Domestic fuel prices to drop this week

Taipei, Taiwan’s domestic gasoline and diesel prices will be lowered by NT$0.1 (US$0.003) and NT$0.2 per liter, respectively, this week, thanks to a stable inventory in oil producing countries, Taiwan’s two major suppliers said Sunday.

State-owned oil refiner CPC Corp. Taiwan said that after the adjustments, which will take effect at midnight Sunday, prices at its stations nationwide will be NT$28.5 per liter for 92 octane unleaded, NT$30 per liter for 95 unleaded and NT$32 per liter for 98 unleaded.

The price of super diesel will drop to NT$26.5 per liter, the company said.

Privately owned Formosa Petrochemical announced identical price cuts, which will take effect from 1 a.m. Monday.

Prices at its gas stations islandwide will fall to NT$26.2 per liter for super diesel, NT$28.5 per liter for 92 octane unleaded, NT$29.9 per liter for 95 unleaded, and NT$32 per liter for 98 unleaded, Formosa Petrochemical said.

CPC said the price cuts reflected falling crude oil prices in the international market as result of a strong U.S. dollar and the U.S.’ estimate that the its shale oil output would reach a record high in September.

CPC Vice President Huang Jen-hung (???) also said crude oil prices were down because the inventory in most oil producing countries had been stable recently.

If the tense political situation in the Middle East eases, crude oil price will likely drop to around US$70 per barrel or lower, he said.

CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.

Under its floating pricing mechanism, the average price per barrel of crude slid US$1.36 this past week, from US$71.97 to US$70.61, according to the CPC website.

Source: Focus Taiwan News Channel