Domestic fuel prices to fall to 14-month low this week

Taipei, Domestic gasoline and diesel prices will fall by NT$0.9 (US$0.029) per liter this week to their lowest for nearly 14 months, due to a fall in international crude oil prices last week, Taiwan's two major gasoline and diesel suppliers announced Sunday.

State-owned oil refiner CPC Corp., Taiwan said that after the adjustment, which will take effect at midnight Sunday, fuel prices at CPC gas stations nationwide will be NT$25.4 per liter for 92 octane unleaded, NT$26.9 per liter for 95 unleaded, NT$28.9 per liter for 98 unleaded and NT$23.2 per liter for super diesel.

The previous lowest prices were registered Nov. 5, 2017 , when the price was NT$25.3 per liter for 92 octane unleaded, NT$26.8 per liter for 95 unleaded, NT$28.8 per liter for 98 unleaded and NT$23.0 per liter for super diesel.

The latest drop is due to a plunge in global crude oil prices this past week after the U.S. stock market suffered its worst week in two years, the U.S. Federal Reserve raised interest rates and lower-than-expected world oil demand growth, CPC said.

CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude. According to that formula, average oil price dropped US$3.86 to US$55.53 per barrel last week.

That equated to a NT$0.9 per liter drop in gasoline and diesel prices, the company said.

CPC spokesman J.Z. Fang said the steep drop mainly came about because of the grim forecasts for global economic growth in 2019 issued by major financial institutions and market concerns over weaker global oil demand next year.

Meanwhile, CPC's main competitor, privately owned Formosa Petrochemical Corp., said it will cut diesel prices by NT$0.8 per liter and lower gasoline prices by NT$0.9 per liter, with the new prices to take effect at 1 a.m. Monday.

After the adjustment, prices at Formosa Petrochemical gas stations nationwide will be NT$23.0 per liter for super diesel, NT$25.4 per liter for 92 octane unleaded, NT$26.8 per liter for 95 unleaded and NT$28.9 per liter for 98 unleaded, the company said.

Source: Focus Taiwan News Channel