Formosa Petrochemical Corp. (台塑石化), a privately owned fuel supplier, said Saturday that it will lower its gasoline and diesel prices next week in the wake of a decline in international crude oil prices this week.
Crude oil prices have been falling amid worry over a global supply glut, which prompted Formosa Petrochemical to announce cuts of NT$0.3 (US$0.009) per liter for gasoline and NT$0.4 per liter for diesel, starting from 1 a.m. Monday.
The cut will drop fuel prices at Formosa Petrochemical gas stations island wide to NT$19.7 per liter for super diesel, NT$22.4 per liter for 92 octane unleaded, NT$23.9 per liter for 95 unleaded and NT$26.2 per liter for 98 unleaded.
The decision followed a price reduction this week of NT$1 per liter for fuel at the private supplier’s pumps.
Overnight, international crude oil prices fell more than 2.5 percent, with West Texas Intermediate crude hitting its lowest level since August at one point. Energy traders’ sentiment was hurt by data from the Organization of the Petroleum Exporting Countries (OPEC), which said its output rose to 33.64 million barrels per day in October, up 240,000 barrels from September, analysts said.
But even before the release of the OPEC output data, the market had become cautious after Donald Trump won the Nov. 8 presidential election in the U.S., according to analysts. During his campaign, Trump promised to increase oil production in his country and reduce its dependence on oil imports.
Trump’s win has complicated a plan by OPEC to freeze its output and has raised concerns over a global oversupply, analysts said. OPEC members are scheduled to meet in Vienna later in November to discuss the production cap plan.
Crude oil prices also came under pressure after the release of crude inventory data by the U.S. Energy Information Administration, which showed an increase of 2.5 million barrels in the U.S. last week,
a million more than analysts had previously expected.
Against this background, Formosa Petrochemical’s main competitor, state-owned CPC Corp., Taiwan (中油), is also expected to announce price adjustments at noon on Sunday, with the cuts coming into effect at midnight.
Source: Focus Taiwan News Channel