State-run oil refiner CPC Corp, Taiwan (CPC, 台灣中油) yesterday said it would not alter prices for its gasoline and diesel products in the next three weeks because of a government policy to keep consumer prices steady during the Lunar New Year holiday shopping period.
The company’s decision comes after consumer prices grew 2.03 percent year-on-year last month, hitting their highest rate of growth in 22 months.
The decision not to raise prices also came on the back of a 3.46 percent spike in global crude oil prices last week to US$109.85 a barrel, up from US$106.18 the previous week, which should have prompted a price increase of NT$0.7 a liter for CPC’s gasoline and diesel products based on a CPC pricing mechanism, the company said in a statement posted on its Web site.
CPC blamed the rise in global crude oil prices on Iran’s threat to block the Strait of Hormuz, through which oil from Middle Eastern oil exporters must pass on its way to global markets.
Formosa Petrochemical Corp (台塑石化), the nation’s only private oil refiner, yesterday did not post its latest pricing information, but the company typically matches CPC’s price adjustments.