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