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CPC Corp, Formosa hike gasoline and diesel prices

State-run CPC Corp, Taiwan (CPC, 台灣中油) announced yesterday that it had increased gasoline prices by NT$1.3 per liter and diesel prices by NT$1.4 per liter in response to soaring crude prices.

The new rates went into effect at midnight and will remain unchanged until the end of this month.

Later yesterday, private oil refiner Formosa Petrochemical Corp (台塑石化) announced that it would match CPC's price hikes, effective from 2am today.

To ease the burden on consumers, CPC, however, will not hike the price of liquid petroleum gas this month, Minister of Economic Affairs Steve Chen (陳瑞隆) said yesterday at an interpellation session in the legislature.

Rocketing oil and coal prices have also considerably increased the costs of state-owned Taiwan Power Co (Taipower, 台電). As a result, Taipower, the nation's sole electricity distributor, incurred a loss of NT$20.63 billion for the first eight months of the year.

Chen said electricity rates will remain unchanged through the end of this year.

Based on CPC's latest wholesale price adjustments, the retail price for 98-octane unleaded gasoline is now NT$31.3 per liter, 95-octane unleaded gasoline is NT$29.8 per liter, 92-octane unleaded gasoline is NT$29.1 per liter and premium diesel oil is NT$26.6 per liter. The new rates represent highs last seen during the week beginning on July 25.

The range of price hikes were made according to 80 percent of a composite price fluctuation -- 70 percent of Dubai crude and 30 percent of Brent crude -- which increased by 7.07 percent from August to last month, CPC said.

The calculation, which was made last month, reflects CPC's procurement.

Meanwhile, the Cabinet-level Fair Trade Commission warned instant noodle manufacturers that any simultaneous hiking of prices could violate fair trade regulations.

The commission will discuss the matter with major manufacturers, spokeswoman Chou Ya-shu (周雅淑) said. Chou was responding to a report in the Chinese-language United Daily News that said the prices of major brands of instant noodles would increase by about 10 percent starting as soon as tomorrow.

The commission will heavily fine manufacturers that are found to be colluding to fix prices, Chou said.
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