Taipei, Sept. 2 (CNA) Domestic gasoline and diesel prices will increase by NT$0.4 (US$0.013) and NT$0.5 per liter, respectively, this week following a hike in international crude oil prices, with the price of 95 octane unleaded to hit a three-month high of NT$30.7, Taiwan's two major suppliers said Sunday.
State-owned oil refiner CPC Corp., Taiwan said that after the adjustments, which will take effect at midnight Sunday, prices at CPC gas stations nationwide will be NT$29.2 per liter for 92 octane unleaded, NT$30.7 per liter for 95 unleaded, NT$32.7 per liter for 98 unleaded, and NT$27.3 per liter for super diesel.
The price increases were mainly because of a drop in the United States' crude oil inventory, a weakening of the U.S. dollar against other major foreign currencies on the international market and rising U.S.-Iran tension, according to the company.
Oil prices rose last week with revived U.S. sanctions against major crude exporter Iran expected to tighten the global supply, CPC Vice President Huang Jen-hung (???) 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.
Under its floating pricing mechanism, the price of 95 unleaded should have been raised to NT$31 in the coming week after the average price per barrel rose US$3.06 this past week from US$72.45 to US$75.51, according to the CPC website.
However, because of the government's fuel price stabilization mechanism, which came into effect in May, weekly price increases are capped at NT$0.4 per liter for gasoline and NT$0.5 per liter for diesel, according to the company.
Under the new mechanism, if the price of benchmark 95 unleaded gasoline rises to between NT$30 and NT$32.4 per liter according to CPC's weekly weighted price formula, the fuel supplier will shoulder 25 percent of the weekly price increase and consumers the remaining 75 percent.
Meanwhile, Formosa Petrochemical announced Sunday that it will raise gasoline and diesel prices by NT$0.4 and NT$0.5 per liter, respectively, effective from 1 a.m. Monday.
After the latest adjustments, prices at Formosa Petrochemical gas stations islandwide will be NT$27.3 per liter for super diesel, NT$29.2 per liter for 92 octane unleaded, NT$30.7 per liter for 95 unleaded, and NT$32.7 per liter for 98 unleaded, the company said.
Source: Focus Taiwan News Channel