Jun 30, 2017LegalComments Off on Domestic fuel prices expected to rise next week
Taipei--Domestic gasoline and diesel prices are expected to rise next week for the first time in five weeks as reduced fears of an oil glut sent international crude oil prices higher, market sources said Friday.
State-run oil refiner CPC Corp. Taiwan (??) is likely to raise its domestic fuel prices by NT$0.3 (US$0.0099) per liter in the coming week, which will keep diesel prices from falling below the NT$20 mark per liter, the sources said.
The company is expected to announce the price adjustment at noon on Sunday and then put it into effect 12 hours later.
The expected hike will come after CPC lowered domestic gasoline and diesel prices by NT$0.3 per liter this week to their lowest levels in eight months.
If CPC adjusts its fuel prices for the coming week as forecast, prices at the pump will rise to NT$20.3 per liter for super diesel, NT$22.8 for 92 octane unleaded gasoline, NT$24.3 for 95 octane unleaded and NT$26.3 for 98 octane unleaded, the sources said.
International crude oil prices got a boost this week from a fall in production in the U.S. market, which eased fears of oversupply in the global market, according to the sources.
The latest data released by the U.S. Energy Information Administration showed that total domestic crude production in the U.S. market in the week to June 23 fell by 100,000 barrels a day to 9.25 million barrels, the steepest weekly decline since July 2016.
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.
Due to the increase in international crude oil prices, CPC calculated the average price of crude oil at US$45.73 per barrel this week, up from NT$44.71 per barrel a week earlier, according to its website.