CPC Keeps Gasoline, Diesel Prices Steady Amid Rising Crude Oil Costs
CPC Corp., Taiwan's state-owned oil supplier, has announced that it will keep domestic gasoline and diesel prices steady next week. Despite a spike in international crude oil prices, CPC said it will recommend retail prices stay at NT$30.5, NT$32.0, and NT$34.0 per liter for 92, 95, and 98-octane unleaded gasoline, respectively, from midnight Monday through Sept. 13.
The recommended retail price of premium diesel will also remain at NT$29.3 per liter during the same period, CPC said. This decision comes as international crude oil prices have risen to US$99.82 per barrel this week, up from US$91.56 last week, due to renewed hostilities between the United States and Iran.
CPC's floating price mechanism takes into account a weighted average of 70 percent Dubai and 30 percent Brent crude. A stronger Taiwan dollar has helped ease crude oil purchasing cost pressure, with the exchange rate averaging NT$31.682 this week against the U.S. dollar, compared to NT$31.775 last week.
As a result, CPC is expected to absorb a loss of NT$4.1 per liter on gasoline sales and NT$5.5 per liter on diesel sales next week. The company estimated that by Sunday it will have absorbed NT$18.72 billion in accumulated losses since the war in the Middle East started.