Do­mes­tic fuel prices likely to rise next week af­ter crude oil in­creases

The China Post - - TAIWAN BUSINESS -

Gaso­line and diesel prices in Tai­wan are likely to rise next week to re­flect a re­bound in in­ter­na­tional crude oil prices, mar­ket sources said Fri­day.

Based on a float­ing pric­ing mech­a­nism used by state-owned oil sup­plier CPC Corp. ( ), do­mes­tic fuel prices may rise by NT$0.3 ( US$0.01) per liter next week, af­ter a fall of NT$0.1 this week, the sources said.

CPC ad­justs do­mes­tic fuel prices on a weekly ba­sis based on a weighted oil price for­mula con­sist­ing of 70 per­cent Dubai crude and 30 per­cent Brent crude.

The sources said that although Iran and the U.S.-led six-na­tion group last week reached a pre­lim­i­nary agree­ment in which the two sides would start a process to draft a fi­nal deal to limit Iran’s nu­clear weapons pro­gram, the Mid­dle Eastern coun­try then tough­ened its stance in the fol­low-up ne­go­ti­a­tions.

The pre­lim­i­nary agree­ment has sched­uled the dead­line for a fi­nal deal on June 30 for both sides.

Overnight, West Texas In­ter­me­di­ate crude oil prices, the bench­mark in the U.S. mar­ket, rose 0.73 per­cent to close at US$50.79 a bar­rel for May 15 de­liv­ery in New York.

In ad­di­tion, Brent crude, the bench­mark for global oil prices, rose more than 2 per­cent to US$56.68 a bar­rel, for May 15 de­liv­ery, in Lon­don.

Ac­cord­ing to CPC’s web­site, the av­er­age price of a bar­rel of crude oil un­der the state-run oil ven­dor’s weekly float­ing price for­mula was US$55.65 on April 9, up from US$53.96 the pre­vi­ous week.

If the price hike is im­ple­mented as ex­pected, prices at the pump will rise to NT$22.40 per liter for su­per diesel, NT$24.4 per liter for 92 oc­tane un­leaded gaso­line, NT$25.9 per liter for 95 oc­tane un­leaded gaso­line and NT$27.9 per liter for 98 oc­tane un­leaded gaso­line.

CPC is sched­uled to an­nounce the weekly new fuel prices at noon Sun­day, as usual.

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