The nation’s two refiners yesterday said they would cut gasoline prices by NT$0.5 per liter and diesel prices by NT$0.6 a liter this week, the 10th straight weekly cut. The new rates come into effect today.
The price adjustment came after Fitch Ratings last week cut Spain’s sovereign credit rating by three notches, while continued worries about an unsteady global economic recovery brought down global crude oil prices, CPC Corp, Taiwan (CPC, 台灣中油) said in a statement.
Based on CPC’s pricing mechanism, its average oil cost fell US$5.86 per barrel, to US$97.10 per barrel, last week from the previous week.
Formosa Petrochemical Corp (台塑石化) said it decided to cut domestic fuel prices, too, in light of its fierce competition with CPC.
The companies have cut gasoline prices by NT$2.5 per liter over the past 10 weeks, since the government announced increases of between 7 and 11 percent for petroleum-based fuel products on April 1.