Gasoline, diesel prices to fall for third straight week

• By Chen Cheng-hui / Staff reporter

State-run refiner CPC Corp, Taiwan (CPC, 中油) yesterday said it would lower gasoline and diesel prices by NT$0.2 and NT$0.1 per liter respectively this week, even though global crude oil prices rose last week, increasing its import costs.

Effective today, gasoline prices at CPC stations would be NT$29.3, NT$30.8 and NT$32.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel would sell for NT$27.1 per liter, the company said in a statement, marking the third consecutive week of price reductions.

CPC said the costs of crude oil imports last week rose to US$3.76 per barrel, based on its floating oil price formula, as global crude oil prices rose on news that Saudi Arabia had rejected US demands to increase output, while Canada’s Keystone Pipeline System had a week-long reduction in capacity.

However, CPC said it would absorb the higher import costs to keep local prices lower than those in neighboring markets to comply with a government policy, the statement said.

Formosa Petrochemical Corp’s (台塑石化) prices for 92, 95 and 98-octane unleaded gasoline are also to decrease by NT$0.2 to NT$29.3, NT$30.8 and NT$32.8 per liter respectively, while premium diesel is to fall NT$0.1 to NT$26.9 per liter, the company said in a separate statement.

Formosa said global crude oil prices fluctuated amid volatile trading last week, with market sentiment affected by investors’ speculation about the US Federal Reserve’s monetary policy, the US dollar index’s fall against other major currencies and a continued increase in US gasoline inventories.