Jul 01, 2017 Legal Comments Off on Formosa Petrochemical announces fuel price hike for next week
Taipei--Formosa Petrochemical Corp. (????), a privately owned fuel supplier, said Saturday that it has decided to raise its domestic gasoline and diesel prices for next week after international crude oil prices bounced back this week.
Amid eased fears over a global supply glut, international crude oil prices staged a rebound from a slump seen a week earlier, prompting Formosa Petrochemical to hike its gasoline and diesel prices by NT$0.3 (US$0.0099) per liter, effective from 1 a.m. Monday.
The price hike stopped a four-week falling streak after Formosa Petrochemical cut its fuel prices by NT$0.3 per liter this week.
Formosa Petrochemical said prices at its gas stations islandwide will rise to NT$20.0 per liter for super diesel, NT$22.8 per liter for 92 octane unleaded, NT$24.2 per liter for 95 unleaded and NT$26.3 per liter for 98 unleaded, the company said.
This week, West Texas Intermediate crude prices in New York and Brent, the global benchmark, in London gained more than 4 percent this week, the biggest increase since the week ending May 19.
The gains in crude oil prices came after a fall in production in the U.S. market, which made many energy traders relieved to some extent, Formosa Petrochemical said.
The latest data released by the U.S. Energy Information Administration (EIA) shows that total domestic crude production in the U.S. market in the week ending June 23 dropped 100,000 barrels a day to 9.25 million barrels, the biggest weekly decline since July 2016.
In addition, Formosa Petrochemical said that a fall in gasoline inventories in the U.S. market also gave a boost to crude prices this week.
According to the EIA, U.S. gasoline inventories fell by 100,000 barrels, or 0.4 percent, from a week earlier to 241 million barrels in the week ending June 23. The weekly drop in gasoline inventories offset the impact of a 0.8 percent year-on-year increase in the week, making energy traders happy, analysts said.
With the rebound in crude prices, Formosa Petrochemical's main competitor, state-owned CPC Corp, Taiwan (??) is expected to also announce a similar price hike at noon on Sunday, which will take effect 12 hours later.
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.
The state-owned company tallies its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.
Source: Focus Taiwan News Channel