Gas and diesel costs to drop to 7-month low
State-run oil refiner CPC Corp., Taiwan (CPC, ) said yesterday it would cut the price of gasoline and diesel by NT$0.7 and NT$0.8 per liter respectively starting today, knocking down costs to a seven-month low.
Starting midnight on Monday, CPC will offer wholesale 92-octane unleaded gasoline at NT$22.4 per liter, 95-octane at NT$23.9 per liter and 98-octane at NT$25.9 per liter.
The wholesale cost of super diesel will fall to NT$20.1 per liter, according to a company statement. The CPC adjusts fuel prices each week based on a formula comprising 70 percent of the Dubai crude and 30 percent of the Brent crude benchmarks.
Global oil prices had ended down after choppy trading last week, with gloom over Chinese demand offsetting optimism on Beijing’s interest rate cut and news that the U.S. economy grew faster than expected in the second quarter, the CPC said.
Under the refiner’s oil pricing mechanism, global costs fell last week to US$43.87 per barrel from the preceding week’s US$47.07 per barrel.
To reflect the reduction, the CPC will lower gasoline and diesel prices by 5.14 percent, a rate that factors in the New Taiwan dollar’s depreciation of NT$0.13 against the U.S. dollar, according to the statement.
Formosa Petrochemical Corp. ( ) said on Saturday that it would lower gasoline and diesel prices by NT$0.7 and NT$0.8 per liter respectively starting Sunday at 1 a.m.
After adjustments, the privately run oil refiner will sell wholesale 92-octane unleaded gasoline at NT$22.3 per liter, NT$0.1 less than the CPC’s equivalent product.
It will sell 95- and 98- octane unleaded gasoline NT$23.8 and NT$26.1 per liter, respectively, and super diesel at NT$19.8 per liter.