Taipei, Feb. 10 (CNA) Formosa Petrochemical Corp., a private fuel supplier in Taiwan, said Saturday that it will cut domestic gasoline and diesel prices for next week after crude oil prices in the U.S. market dropped to below US$59 a barrel for the first time in 2018.
The fall in international crude oil prices came after turmoil in global financial markets as well as an increase in oil production in the United States, prompting Formosa Petrochemical to lower its gasoline and diesel prices by NT$0.6 (US$0.02) per litter, effective from 1 a.m. Monday.
This is the second consecutive week Formosa Petrochemical has cut fuel prices after a NT$0.2 cut per liter this week.
After the latest price adjustments, prices at Formosa Petrochemical gas stations islandwide will drop to NT$24.0 per liter for super diesel, NT$26.4 per liter for 92 octane unleaded, NT$27.8 per liter for 95 unleaded and NT$29.90 per liter for 98 unleaded, the company said.
This week, equities in the U.S. market were extremely volatile, with the Dow Jones Industrial Average falling about 1,000 points, or 5.2 percent, amid rising concerns that the U.S. Federal Reserve will raise interest rates at a faster pace than previously expected.
The volatility in the financial market has also prompted energy traders to turn cautious, which pushed down international crude oil prices throughout the week, market analysts said.
In addition, data showed weekly U.S. crude production topped 10 million barrels a day to reach a new record, which also placed pressure on crude oil prices on the global market.
Formosa Petrochemical's main competitor, state-owned CPC Corp. Taiwan, is likely to make similar price adjustments for next week.
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. Based on the latest fluctuations in international crude oil prices, CPC's average price for crude oil was calculated at US$67.05 per barrel as of Thursday, an increase of US$2.47 from a week earlier, according to its website.
Source: Focus Taiwan