The state-owned oil refiner CPC Corp. announced a NT$1.1 (US$0.03) per liter fuel price hike from Monday, the largest weekly increase this year so far.
With the hike, announced Sunday, prices at the pump after midnight will stand at NT$23.3 per liter for 92 octane unleaded, NT$24.8 per liter for 95 unleaded, NT$26.8 per liter for 98 unleaded, and NT$20.8 per liter for super diesel.
The upcoming hike matches this year's largest fuel price increases introduced April 18, but the new price levels remain lower than the 2016 peak witnessed May 23, when the price of 95 unleaded reached NT$25.1 per liter.
CPC, which calculates its weekly fuel prices based on a weighted oil price formula that comprises 70 percent Dubai crude and 30 percent Brent crude, said global crude prices jumped in the past week on the third weekly slide of fuel stockpiles in the United States, which was reported by the Energy Information Administration Aug. 17.
The company also pointed out that concerns of an over-supply in the oil market have been eased by remarks made by the energy minister of Saudi Arabia, who expressed his country's intention to discuss with other oil producers possible measures to stabilize the oil market.
Crude prices also rose on Russia's reported willingness to work with the Saudis on such possible market stabilization measures, CPC added.
On Saturday, CPC's smaller rival, Formosa Petrochemical Corp., announced wholesale price hikes by the same margins, which will take effect from 1 a.m. Monday.
Formosa expects prices at gas stations it supplies to rise to NT$20.05 per liter for super diesel, NT$23.2 per liter for 92 unleaded, NT$24.7 per liter for 95 unleaded and NT$27 per liter for 98 unleaded.
Both companies said actual prices at the pump will still be decided by the gas stations themselves, as some of them are run by franchisees or independent chains, such as National Petroleum Corp.
Source: Focus Taiwan