CPC to freeze fuel prices, despite international drop

State-owned CPC Corp, Taiwan (台灣中油) on Saturday announced that it would leave its domestic gasoline and diesel prices unchanged this week, despite a drop in international crude oil prices.

Rival Formosa Petrochemical Corp’s (台塑石化) Web site yesterday showed that its fuel prices would also remain unchanged this week.

It would be the eighth consecutive week that CPC and Formosa have maintained their domestic fuel prices at the same level.

International crude oil prices fell significantly after a volatile week on hopes of a diplomatic breakthrough in the Middle East following the US midterm elections.

In addition, Iran reportedly sent a proposal on nuclear technology to the US through Qatar, adding downward pressure to crude prices.

Front-month Brent crude oil futures — a global benchmark — last week fell 13.32 percent to settle at US$98.32 per barrel on the Intercontinental Exchange in London, while West Texas Intermediate crude oil futures — the US oil benchmark — lost 12.76 percent to US$90.83 per barrel on the New York Mercantile Exchange.

Under CPC’s floating fuel price mechanism, which tracks a weighted average of 70 percent Dubai crude and 30 percent Brent crude, the average international crude oil price fell to US$99.79 per barrel last week from US$117.01 per barrel the previous week.

This week, retail gasoline prices are to remain at NT$31.2, NT$32.7 and NT$34.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively at CPC and Formosa stations, while prices of premium diesel would stay at NT$29.9 per liter at CPC stations and NT$29.7 per liter at Formosa pumps, the companies said.