TAIPEI, Taiwan — Taiwanese motorists will see no change in fuel prices this week despite a sharp surge in global crude oil prices, as CPC Corp, Taiwan and Formosa Petrochemical Corp announced they would keep domestic gasoline and diesel prices steady.
The decision marks the sixth consecutive week that the two major fuel suppliers have maintained their domestic prices, even as renewed hostilities between the United States and Iran sent international crude oil prices sharply higher.
Global Oil Prices Surge
International benchmark prices climbed significantly last week.
Front-month Brent crude futures rose 9.28 percent to settle at US$96.28 per barrel, while West Texas Intermediate crude gained 9.69 percent to reach US$91.48 per barrel.
The sharp increases reflected growing concerns over the impact of renewed tensions involving the US and Iran on global energy markets and potential oil supplies.
CPC’s Pricing Formula Shows Higher Costs
CPC said its floating pricing mechanism showed a substantial increase in the average cost of international crude oil.
The company uses a formula based on a weighted average of 70 percent Dubai crude and 30 percent Brent crude.
Under that calculation, the average international crude oil price rose to US$99.82 per barrel last week, compared with US$91.56 per barrel the previous week.
Despite the increase, fuel prices in Taiwan will remain unchanged.
Stronger Taiwan Dollar Helps Ease Pressure
One factor helping limit the impact of rising crude prices was the strengthening of the New Taiwan dollar.
The local currency averaged NT$31.682 against the US dollar last week, compared with NT$31.775 the previous week, slightly reducing CPC’s cost of purchasing oil priced in US dollars.
The stronger currency helped offset part of the pressure created by the sharp increase in international crude prices.
What Drivers Will Pay This Week
Retail prices for gasoline at CPC and Formosa stations will remain unchanged:
- 92-octane unleaded gasoline: NT$30.5 per liter
- 95-octane unleaded gasoline: NT$32 per liter
- 98-octane unleaded gasoline: NT$34 per liter
Premium diesel prices will also remain steady:
- CPC stations: NT$29.3 per liter
- Formosa stations: NT$29.1 per liter
Six Weeks of Stable Prices Despite Oil Market Turmoil
The decision to keep domestic fuel prices unchanged comes as global oil markets face renewed uncertainty.
International crude prices can be affected by armed conflict, supply disruptions, production decisions by major oil-producing countries and changes in global demand.
For Taiwan, which imports the vast majority of its energy needs, sharp movements in global crude prices can quickly increase pressure on fuel suppliers and the wider economy.
For now, however, drivers are being shielded from the latest surge in international oil prices.
Despite crude prices jumping by nearly 10 percent in a single week, Taiwan’s gasoline and diesel prices will remain unchanged — at least for now.
The key question for motorists and businesses will be whether domestic prices can remain stable if global oil prices continue climbing in the weeks ahead.
WWC ONE MEDIA J.M.D
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