The nation’s two refiners yesterday said they would increase domestic gasoline prices by NT$1.0 per liter and diesel prices by NT$1.1 a liter this week, ending 13 straight weeks of price cuts. The new rates take effect today.
The refiners had lowered their prices by NT$3.2 a liter and NT$3.7 a liter for gasoline and diesel between April 2 and July 2, data showed.
CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said that their latest price adjustment reflected market concerns about Iran’s threat to close the Strait of Hormuz and the Norway oil union’s plan to stop output in a dispute over pensions.
Prices also rose due to positive market sentiment after some central banks introduced stimulus measures last week, Formosa added.
Based on CPC’s pricing mechanism, its average oil costs rose by US$5.85 per barrel to US$97.29 per barrel last week from the previous week.