CPC Corp. Defies Higher Crude Oil Costs, Keeps Fuel Prices Steady
CPC Corp., Taiwan's state-owned oil supplier, has announced that it will maintain domestic gasoline and diesel prices at current levels next week despite higher crude oil costs. The company cited a desire to curb inflationary pressures and keep fuel prices lower than in neighboring markets.
As of Sunday, the recommended retail prices for 92, 95, and 98-octane unleaded gasoline will remain at NT$31.2, NT$32.7, and NT$34.7 per liter, respectively. The price of premium diesel will also stay at NT$29.9 per liter.
CPC Corp.'s decision comes after the average international crude oil price rose 9.15% this week to US$125.76 per barrel. The company's floating price mechanism is based on a weighted average of 70% Dubai and 30% Brent crude, which accounts for the increase in purchasing costs.
CPC Corp. estimates that it will absorb a loss of NT$9.3 per liter on gasoline sales and NT$11.3 per liter on diesel sales next week due to its decision not to raise prices at the pump. The company has already increased its gasoline prices by NT$0.7 per liter and diesel prices by NT$0.6 per liter for this week, citing a spike in crude oil prices.