Taiwan’s two major fuel suppliers announced yesterday that they would reduce domestic gasoline and diesel prices for the fourth straight week, following the largest weekly decline in international crude oil prices in over a year.
CPC Corp, Taiwan and Formosa Petrochemical Corp both confirmed in separate statements that fuel prices would decrease by NT$0.1 per liter starting today.
After the reduction, prices at CPC and Formosa stations for unleaded gasoline will be NT$28.8 per liter for 92-octane, NT$30.3 per liter for 95-octane, and NT$32.3 per liter for 98-octane. According to CPC, 95-octane gasoline, which makes up more than 70 percent of its sales, will now be at its lowest price since early July last year, at NT$30.3 per liter.
Premium diesel prices will drop to NT$27.3 per liter at CPC stations and NT$27.1 at Formosa pumps.
The fuel price cut comes after international oil prices slid last week, driven by easing fears of a supply disruption as Israel announced it would not target Iran’s oil facilities. Additionally, the International Energy Agency lowered its global crude oil demand forecast for the year, further affecting market sentiment.
Chinese economic data also showed a year-on-year decline in oil demand, contributing to the dip in prices. CPC reported that its crude oil costs fell by 3.83 percent last week, according to its floating oil price formula.
On Friday, US West Texas Intermediate (WTI) crude oil futures dropped by 2.05 percent, closing at US$69.22 per barrel, marking an 8.39 percent decline over the week, the largest weekly drop since October 6 of last year. Brent crude oil futures also fell, down 1.87 percent to US$73.06 per barrel, with a weekly loss of 7.57 percent, the largest since early September, according to Dow Jones Newswires.
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