CPC Corp, Taiwan (CPC, 台灣中油) yesterday announced price cuts of NT$1.3 per liter for gasoline products and NT$1.5 per liter for diesel products, effective today, as a plunge in global crude oil prices continued last week.
The drop in prices was fed by weak demand for oil linked to the spread of COVID-19 and a price dispute between two of the biggest producers in the world — Saudi Arabia and Russia — after they failed to reach an agreement earlier this month to curb production levels, CPC said in a statement.
Based on CPC’s weighted oil price formula — composed of 70 percent Dubai crude and 30 percent Brent crude — its average crude oil costs fell to US$28.01 per barrel last week, from US$33.66 a week earlier.
After factoring in the depreciation of the New Taiwan dollar, which was down NT$0.187 against the US dollar last week, fuel prices would be reduced by 13.02 percent this week, CPC said.
From today, prices at CPC gas stations are to be NT$19.0, NT$20.5 and NT$22.5 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$16.2 per liter, it said.
Formosa Petrochemical Corp (台塑石化) also lowered its fuel prices by the same amount, cutting its 92, 95 and 98-octane unleaded gasoline prices to NT$19.0, NT$20.4 and NT$22.5 per liter respectively, with premium diesel dropping to NT$16.0 per liter.
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