Taipei: State-owned oil supplier CPC Corp., Taiwan, announced on Saturday its decision to reduce domestic gasoline and diesel prices, with a decrease of NT$1 (US$0.03) per liter for gasoline and NT$0.8 per liter for diesel. This move is a response to the recent decline in international crude oil prices.
According to Focus Taiwan, this marks the second consecutive week that CPC has opted to lower fuel prices domestically. The decision aligns with ongoing negotiations between the United States and Iran, which aim to establish a ceasefire and have resulted in increased shipment volumes through the Strait of Hormuz.
Prior to these reductions, CPC had maintained stable fuel prices for 11 consecutive weeks, choosing to absorb the cost from the spike in crude oil prices. This strategy was intended to alleviate inflationary pressures on both consumers and businesses within Taiwan.
Following the price adjustment, CPC has announced a recommendation for retail prices to drop to NT$30.4, NT$31.9, and NT$33.9 per liter for 92, 95, and 98-octane unleaded gasoline, respectively. These changes will take effect from midnight on Monday and continue through July 5. The price for premium diesel is also expected to decrease to NT$29.5 per liter during this period.
CPC’s pricing strategy operates on a floating mechanism that considers 70 percent Dubai crude and 30 percent Brent crude. The average international oil price has fallen to US$69.80 per barrel this week, a decrease from US$76.39 the previous week.
Despite more ships navigating through the Strait of Hormuz, safety concerns have been reignited following an attack on the Evergreen Marine Corp.-owned container ship Ever Lovely. The Singapore-registered vessel was struck by an unidentified projectile on Thursday, though no injuries were reported, and the vessel and cargo remained intact.
CPC estimates that it will have absorbed NT$17.26 billion in losses by Sunday due to not fully passing on the increased costs of international crude oil to local consumers since the onset of the Middle East conflict.