Chinese Petroleum cuts gasoline prices

The Chinese Petroleum Corp (中油) announced it would cut petroleum prices late last night to reflect dropping international oil prices.

Chinese Petroleum shaved NT$0.5 off the pump price of petroleum and NT$0.2 off the price of diesel fuel. The price cut -- which amounts to an average drop of 2.23 percent -- went into effect at midnight last night.

Determined not to be out not to be undercut at the pump by Chinese Petroleum, rival Formosa Petrochemical Corp (台塑石油) also announced they would match Chinese Petroleum's price cuts.

Prices of US crude have dropped to US$25 per barrel after hovering in recent days around US$30 a barrel for deliveries in July.

Chinese Petroleum, Taiwan's state-owned oil company, just two weeks ago decided to temporarily put off an internal recommendation to raise prices at the pump in line with a weakening New Taiwan dollar and higher crude oil costs.