CPC Corp. Taiwan (??), the state-owned fuel supplier, said Sunday it will raise its domestic gasoline and diesel prices for the fourth straight week in reflection of a continued increase in international crude oil prices.
CPC's gasoline and diesel will rise by NT$1.0 (US$0.03) per liter with effect from midnight Sunday, after a hike of NT$0.3 per liter last week.
After the increase, fuel prices CPC pumps nationwide will rise to NT$22.2 per liter for super diesel, NT$24.6 per liter for 92 octane unleaded, NT$26.1 per liter for 95 unleaded and NT$28.1 per liter for 98 unleaded next week.
Formosa Petrochemical Corp., a private competitor of CPC, also announced a price hike of NT$1.0 per liter for gasoline and diesel prices, effective 1 a.m. Sunday.
Fuel prices at Formosa Petrochemical gas stations islandwide have been increased to NT$21.9 per liter for super diesel, NT$24.5 per liter for 92 octane unleaded, NT$26.0 per liter for 95 unleaded and NT$28.3 per liter for 98 unleaded.
CPC calculates its weekly fuel prices based on a weighted oil price formula that comprises 70 percent Dubai crude and 30 percent Brent crude.
Due to a spike in international crude oil prices, CPC has calculated the average weekly price of crude oil at US$51.56 per barrel, up from NT$47.38 per barrel last week, according to its website.
International crude oil prices have been rising since the Organization of Petroleum Exporting Countries (OPEC) decided on Nov. 30 to reduce oil production by 1.2 million barrel a day with effect from January 2017, marking its first cut since 2008.
On Saturday, non-OPEC members also decided on a production cut, agreeing to a reduction of 558,000 barrels of crude per day.
The oil production cuts by both OPEC and non-OPEC producers are expected to lower the daily oil supply by 2 percent.
CPC said that in addition to the production cuts, the U.S. Energy Information Administration (EIA) reported a 2.4 million barrel drop in oil inventories for the week ending Dec. 2, which was steeper than the market estimate of 2.21 million barrels.
Source: Focus Taiwan News Channel