CPC Corp. Taiwan (??) will increase its domestic fuel and diesel prices next week for the fifth consecutive week as international crude oil prices continue to rise, the state-owned fuel supplier said Sunday.
An agreement struck by the Organization of Petroleum Exporting Countries (OPEC) on Nov. 30 to cut production pushed crude prices to a 17-month high this past week, leading CPC to hike its gasoline prices by NT$0.3 (US$0.009) per liter, effective midnight.
The latest price hike will send the price of CPC's benchmark 92 octane unleaded to nearly NT$25 per liter, after the company raised its gasoline and diesel prices by NT$1.0 per liter on Dec. 11.
CPC calculates its weekly fuel prices based on a weighted oil price formula that comprises 70 percent Dubai crude and 30 percent Brent crude.
The formula yielded an average weekly price of crude oil at US$52.86 per barrel this past week, up from NT$51.56 per barrel the previous week, triggering the price hike.
After the increase, fuel prices at CPC pumps nationwide will rise to NT$22.6 per liter for super diesel, NT$24.9 per liter for 92 octane unleaded, NT$26.4 per liter for 95 unleaded and NT$28.4 per liter for 98 unleaded in the coming week.
International crude oil prices moved higher earlier in the week amid eased fears over a supply glut after OPEC's output cut agreement, which aims to lower production by 1.2 million barrels a day starting in January 2017.
It was the first cut in production agreed to by the oil cartel since 2008.
Non-OPEC oil producers also agreed last week to follow suit and lower output by 558,000 barrels per day.
Though there has been some skepticism that OPEC members and non-OPEC countries will keep their promises to cut output, OPEC countries including Kuwait, Saudi Arabia, and the United Arab Emirates have notified customers of a supply cut starting in January.
On Saturday, Formosa Petrochemical Corp., a private competitor of CPC, announced a similar price hike, saying it was raising gasoline prices by NT$0.3 per liter and diesel prices by NT$0.4 per liter, effective 1 a.m. Monday.
Fuel prices at Formosa Petrochemical gas stations islandwide will go up to NT$22.3 per liter for super diesel, NT$24.8 per liter for 92 octane unleaded, NT$26.3 per liter for 95 unleaded and NT$28.6 per liter for 98 unleaded.
Source: Focus Taiwan News Channel