Formosa Petrochemical announces fuel price cut for next week
Jan 14, 2017Government & PoliticsComments Off on Formosa Petrochemical announces fuel price cut for next week
Taipei-Formosa Petrochemical Corp. (????), a privately owned fuel supplier in Taiwan, said Saturday it will cut its gasoline and diesel prices next week in response to a fall in international crude oil prices this week.
Concerns over a global supply glut reemerged this week, prompting Formosa Petrochemical to lower its gasoline prices by NT$0.3 (US$0.009) per liter and its diesel prices by NT$0.4 per liter next week, effective 1 a.m. Monday.
After the price cuts, fuel prices at Formosa Petrochemical gas stations islandwide will fall to NT$22.4 per liter for super diesel, NT$24.9 per liter for 92 octane unleaded, NT$26.4 per liter for 95 unleaded and NT$28.7 per liter for 98 unleaded.
This past week, Formosa Petrochemical raised its diesel prices by NT$0.1 per liter but its gasoline prices remained unchanged.
International crude oil prices trended lower during most of the week as doubts were running high about whether a production deal reached by Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members late last year will be carried out as planned.
The output cut deal to lower production by about 1.8 million barrels a day took effect on Jan. 2, but Iraq's support for the deal has come under question.
The world's second largest oil producer recently reported a new high in crude oil exports, raising concerns over the production cut agreement and possible oversupply.
In addition, energy companies in the United States added oil rigs last week for a 10th week in a row, also raising fears of a supply glut, sending crude prices lower.
Although Saudi Arabia, the largest OPEC producer, said it has lowered its exports to Asia to give crude oil prices some support, the global oil market remained bothered by a supply glut concern.
State-owned CPC Corp., Taiwan (??), Formosa Petrochemical's main competitor, is also expected to announce similar price adjustments at noon on Sunday, with the decline taking effect at midnight.