Taipei: State-owned oil company CPC Corp., Taiwan, has decided to leave domestic gasoline and diesel prices unchanged next week, aiming to ease the impact on local consumer prices amid ongoing conflicts in the Middle East. This marks the ninth consecutive week that CPC has maintained steady fuel prices, aligning with the government's strategy to keep prices lower than neighboring regions such as Japan, South Korea, Hong Kong, and Singapore.
According to Focus Taiwan, CPC announced on Saturday that retail prices would remain at NT$32.4 (US$1.03), NT$33.9, and NT$35.9 per liter for 92, 95, and 98-octane unleaded gasoline, respectively, from midnight on Monday through June 7. The premium diesel price will also stay at NT$31.0 per liter during the same period. This decision allows CPC to absorb losses of NT$1.8 per liter for gasoline and NT$3.3 per liter for diesel sales for the coming week. However, the financial impact is expected to be less severe than the previous week due to a decrease in international crude oil prices and a stronger Taiwan dollar.
CPC's pricing mechanism is based on 70 percent Dubai crude and 30 percent Brent crude. This week, the average international oil price was US$99.36 per barrel, down from US$107.56 last week. Additionally, the average exchange rate for the Taiwan dollar against the U.S. dollar improved to NT$31.431 this week, compared to NT$31.600 last week, according to CPC's data.
Since the onset of the U.S.-Israel war against Iran on February 28, CPC estimates it has absorbed NT$16.66 billion in losses. Despite these challenges, CPC reiterated its commitment to adhering to government directives aimed at stabilizing fuel prices, thereby alleviating economic pressure on both consumers and the business sector.