Taipei: State-run CPC Corp. Taiwan and privately owned Formosa Petrochemical Corp. (FPC) have announced reductions in fuel prices, with gasoline and diesel prices being lowered by NT$1.1 (US$0.036) and NT$1.4 per liter, respectively. The new pricing, effective from Monday, sets gasoline prices at CPC and Formosa stations at NT$27.2, NT$28.7, and NT$30.7 per liter for 92-, 95-, and 98-octane unleaded gasoline. Premium diesel prices will be NT$25.7 per liter at CPC stations and NT$25.5 at Formosa pumps.

According to Focus Taiwan, CPC adjusts its fuel prices weekly using a weighted formula that considers crude oil price changes-specifically, 70 percent Dubai crude and 30 percent Brent crude. The pricing mechanism also accounts for currency fluctuations. The company cited a stronger local currency and a significant drop in global crude oil prices as reasons for the current price cuts.

Formosa Petrochemical has also attributed the recent crude oil price decline to market fears of a potential global recession triggered by the ongoing U.S.-China trade war, which could weaken demand. Additionally, Saudi Arabia’s plan to increase production capacity to expand its market share has contributed to the drop in crude oil prices. Brent crude fell to US$60.00 per barrel last Wednesday, marking its lowest level in four years, as reported by international media.