State-run CPC Corp, Taiwan (CPC, 台灣中油) said yesterday it would hike its wholesale gasoline price by NT$0.3 per liter and diesel prices by NT$0.2 per liter, effective today.
The latest price adjustment marks the state-run company’s sixth straight week of price hikes for domestic fuel consumption amid rising global crude oil prices, with the wholesale price of 98-octane unleaded gasoline reaching NT$29.5 next week, its highest price in seven months.
In Asian trading yesterday, crude oil prices moved in a range around US$72 a barrel. Global oil prices reached a record US$147.27 a barrel on July 11 last year, but have since dropped to as low as US$32.4 on Dec. 19, the New York Mercantile Exchange (NYMEX) tallies showed.
“It is reasonable to see oil prices trade at between US$60 and US$70 a barrel,” Lee Chih-tsuen (李志村), chairman of Formosa Sumco Technology Corp (台勝科), told reporters yesterday on the sidelines of the local silicon wafer supplier’s annual shareholders meeting.
Formosa Sumco is a unit under Taiwanese industrial conglomerate Formosa Plastics Group (台塑集團), which also controls the nation’s only private refiner, Formosa Petrochemical Corp (台塑石化).
“The rise [in oil prices] seems to have come too quickly as the economy is still weak,” local cable TV station USTV quoted Lee as saying, hinting that rising oil prices at this time could weaken the strength of economic recovery.
Taiwan is expected to see a year-on-year decline of 4.25 percent in economic activity this year, after the export-dependent economy contracted by a record 10.24 percent in the first quarter, the Directorate-General of Budget, Accounting and Statistics said on May 21.
The state refiner yesterday announced price hikes in the wholesale prices of alcohol-gasoline blends for motor vehicles by NT$0.3 per liter, also taking effect today.
CPC’s weekly price adjustment was made using the company’s floating price mechanism, which showed an increase of 4.5 percent in the company’s cost for oil purchases in the week from May 29 to June 4, following a rise of 10.4 percent in the previous week, the statement said.
Hours after CPC’s price announcement, Formosa Petrochemical said it would match its bigger rival’s weekly price hikes for next week, also effective today.
Under the latest price hike, CPC’s wholesale price of 95-octane unleaded gasoline will be NT$27.3 per liter and 92-octane unleaded gasoline will cost NT$28 per liter. The price of alcohol-gasoline blends will be NT$28 per liter, while those of regular and premium diesel will increase to NT$24.16, it said.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s