The state-run Chinese Petroleum Corp (
Oil prices eased yesterday after crude hit nearly US$40 per barrel in New York last week for the first time in more than 13 years due to fears of terrorist strikes in the Middle East and US gasoline shortages.
In early London trading, US light crude was down US$1.17 a barrel to US$38.76 after Saudi Oil Minister Ali Al-Naimi called on the producer cartel to raise production by at least 1.5 million barrels a day to balance global supply and demand, Reuters reported yesterday. The price of London's Brent crude lost US$1.18, closing at US$35.82 a barrel.
The rising crude prices are forcing the nation's largest oil refiner to consider hiking prices for the fourth time this year, Chinese Petroleum president Pan Wen-yen (潘文炎) told reporters yesterday.
"Our current wholesale oil prices were based on a cost of US$37 per barrel, so we are under a lot of pressure these days, especially when the price surged past US$40 per barrel last week," Pan said.
The company has already adjusted its oil prices three times this year, increasing the cost to consumers from 9 percent to 10 percent more than at the end of last year.
Council for Economic Planning and Development Vice Chairwoman Ho Mei-yueh (
Ho said the consumer prices for the first quarter of the year rose by 0.51 percent, and the hikes in oil prices contributed to 40 percent of the increase.
"The 0.51 percent rise is considered moderate, and has shown that an oil price adjustment won't spur on inflation," she said.
Nevertheless, Pan said the company will maintain the current rates at least until the end of the month, as it promised in the legislature in March.
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