Taipei: CPC Corp., Taiwan announced Saturday it will keep domestic gasoline and diesel prices unchanged next week to ease the impact of rising international crude oil prices amid tensions in the Middle East. The decision marks the fifth consecutive week that CPC has held fuel prices steady.
According to Focus Taiwan, in a statement, CPC said recommended retail prices will remain at NT$32.4 (US$1.02), NT$33.9, and NT$35.9 per liter for 92, 95, and 98-octane unleaded gasoline, respectively, from midnight Monday through May 10. The recommended price for premium diesel will also stay at NT$31.0 per liter, CPC said.
CPC stated that the price freeze is aimed at keeping Taiwan's fuel prices lower than those in neighboring markets, where governments continue to subsidize gasoline and diesel. Following the decision, CPC will absorb NT$4.3 per liter for gasoline and NT$6.1 per liter for diesel next week.
The company noted that the amount it absorbs will increase due to higher average crude prices and a weaker Taiwan dollar. Under CPC's floating price mechanism, which is based on a weighting of 70 percent Dubai crude and 30 percent Brent crude, the average international oil price rose to US$110.90 per barrel this week, up from US$103.63 last week.
The average exchange rate of the Taiwan dollar stood at NT$31.548 against the U.S. dollar this week, compared with NT$31.530 last week, according to CPC. Since the conflict involving the U.S., Israel, and Iran broke out in late February, CPC has absorbed an estimated NT$13.2 billion in losses.
CPC said it will continue to support government efforts to limit the impact of rising crude prices on consumers and businesses.