State-run CPC Corp, Taiwan (CPC, 台灣中油) announced yesterday it is reducing its domestic diesel prices by NT$0.20 per liter, while keeping gasoline prices unchanged. The new rates are effective today.
Smaller rival Formosa Petrochemical Corp (台塑石化) announced it would follow suit.
The two refiners said in their separate statements that global crude oil prices edged down in a week of volatile trade last week, affected by tensions over the Ukraine crisis and an increase in the US’ crude inventory.
Under CPC’s pricing mechanism, its average crude oil costs dropped US$0.40 to US$106.55 per barrel last week from the previous week. With the NT dollar appreciating NT$0.038 against the US currency last week, the firm’s weighted oil price formula showed a 0.4 percent decline in the week, enabling the firm to cut diesel prices by NT$0.20 per liter and maintain gasoline prices, the company said.