The nation’s two oil refiners said yesterday they were cutting gasoline and diesel prices by NT$0.60 per liter, the biggest weekly cuts in nearly nine months, effective today.
CPC Corp, Taiwan (CPC, 台灣中油), said that global crude prices slid last week after Middle East tensions eased and the US dollar turned stronger against major currencies.
Formosa Petrochemical Corp (台塑石化) said that crude oil prices also declined because of an increase in the US’ crude inventory, as well as perceptions of softening global economic conditions.
Under CPC’s pricing mechanism, domestic fuel prices should have dropped by NT$1.20 per liter to reflect the refiner’s average crude oil cost, which fell 4.41 percent to US$114.37 per barrel last week from the previous week.
However, CPC said it halved the cut because it has absorbed cost increases since last December to help stabilize consumer prices.