The nation’s two oil refiners announced yesterday that they would cut domestic gasoline and diesel prices by NT$0.3 per liter and NT$0.4 a liter respectively, effective today.
CPC Corp Taiwan (台灣中油) said global crude oil prices fell last week on the back of weakening global economic growth and an increase in US crude oil inventories.
Formosa Petrochemical Corp (台塑石化) said the poor economic outlook for the US and Europe, as well as falling global stock markets, have dampened market sentiment and dragged down oil prices for the week.
Under CPC’s pricing mechanism, domestic gasoline prices should drop by NT$0.6 per liter and NT$0.8 per liter for diesel prices to reflect the refiner’s average cost of crude oil, which fell 2.66 percent to US$109.45 a barrel last week.
CPC said it halved the cut because it has absorbed cost increases since last December to help stabilize consumer prices.