Taiwan's state-owned fuel supplier, CPC Corp., Taiwan, will raise gasoline and diesel prices from midnight on Sunday, the company announced.
Under the adjustment, gasoline prices will increase NT$0.2 (US$0.006) per liter and diesel prices by NT$0.3 per liter, the company said.
CPC attributed the price hike to Russia's announcement that it will work with the Organization of the Petroleum Exporting Countries (OPEC) to cut output. The announcement pushed up crude oil prices in the international market.
After the adjustment, fuel prices at CPC gas stations nationwide will rise to NT$21.7 per liter for super diesel, NT$24 per liter for 92 octane unleaded, NT$25.5 per liter for 95 unleaded and NT$27.5 per liter for 98 unleaded.
The CPC runs a floating price mechanism for its gasoline and diesel products, adopting a pricing formula based on 70 percent Dubai crude and 30 percent Brent crude (7D3B).
This week, the average 7D3B price reached US$49.78 per barrel, up US$0.85 from US$48.93 per barrel the previous week, according to the CPC.
A weaker Taiwan dollar has also made crude oil imports more expensive. This week, the Taiwan dollar depreciated 0.6 percent against the U.S. dollar due to fund outflows.
Privately-owned Formosa Petrochemical Corp., CPC's only competitor in the domestic market, announced the previous day that from 1 a.m. on Monday, its gasoline prices will increase NT$0.2 per liter and diesel prices NT$0.3 per liter.
Fuel prices at Formosa Petrochemical gas stations will rise to NT$21.4 per liter for super diesel, NT$23.9 per liter for 92 octane unleaded, NT$25.4 per liter for 95 unleaded and NT$27.7 per liter for 98 unleaded, according to the company.
Source: Focus Taiwan News Channel