Mon, Aug 13, 2018 - Page 16 News List

Refiners to drop price of fuel amid trade tensions

Staff writer, with CNA

Taiwan’s domestic gasoline and diesel prices are this week to fall by NT$0.2 and NT$0.1 per liter respectively, after trade friction between China and the US hurt the global oil market, Taiwan’s two major suppliers said yesterday.

Under its floating pricing mechanism, the average crude oil price per barrel slid US$0.84 this past week to US$71.97, data provided by state-owned oil refiner CPC Corp, Taiwan (CPC, 台灣中油) showed.

CPC vice president Huang Jen-hung (黃仁弘) said the price drop was due to Russia’s growing oil output and the trade dispute between Beijing and Washington.

However, compared with the China-US trade dispute, CPC is more concerned with the unstable political situation in the Strait of Hormuz, the waterway to the Persian Gulf through which about 30 percent of the world’s oil supply passes, Huang said.

If tensions in the region result in the waterway being closed, oil prices could soar, he said.

Iran has threatened to take military action to shut down the strait in response to Washington’s economic sanctions, which could possibly be expanded to Iranian oil exports in November, foreign media reports have said.

Formosa Petrochemical Corp (台塑石化) yesterday announced similar price cuts that are also to take effect today.

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