Formosa Petrochemical announces fuel price cut for next week

2017/07/15 21:08:35
Formosa Petrochemical announces fuel price cut for next week

Taipei, July 15 (CNA) Formosa Petrochemical Corp. (台塑石化), a privately owned fuel supplier, said on Saturday that it will cut its domestic gasoline and diesel prices in the coming week, ending two consecutive weeks of price hikes.

Formosa Petrochemical said that because international crude oil prices were down for much of this week compared to the previous week, it will lower gasoline prices by NT$0.3 (US$0.098) per liter and diesel prices by NT$0.4 per liter, effective from 1 a.m. Monday.

The cut came after an increase of NT$0.4 per liter for gasoline and a NT$0.5 per liter rise for diesel at the beginning of this week.

Following the cut, prices at its gas stations islandwide will fall to NT$20.1 per liter for super diesel, NT$22.9 per liter for 92 octane unleaded, NT$24.3 per liter for 95 unleaded and NT$26.4 per liter for 98 unleaded, Formosa Petrochemical said.

Crude oil prices fell in the earlier part of this week on an increase in production in the U.S. market last week to 9.4 million barrels per day, up about 59,000 barrels a day from the previous week, analysts said.

Sentiment in the oil market was also affected by a report pointing to an increase in output in the Organization of Petroleum Exporting Countries (OPEC), analysts said.

OPEC member crude production averaged 32.61 million barrels a day in June, up 393,000 barrels a day from a month earlier in the wake of higher output from Libya, Nigeria, Angola, Iraq and Saudi Arabia.

But the losses in the oil market early in the week were recouped by a fall in U.S. crude oil inventories, analysts said.

According to the U.S. Energy Information Administration (EIA), crude inventories in the U.S. market fell by 7.6 million barrels last week, a steeper fall than the 2.9 million barrel-drop expected.

China's rising oil imports also helped crude prices rebound in the latter part of the week, analysts said. In June, China imported 8.79 million barrels per day of crude oil in June, up 17.9 percent from a year earlier.

Despite the rebound in crude prices, however, fears over a supply glut remain, which is expected to lead to further volatility in the market.

After Formosa Petrochemical's announcement on Saturday, its main competitor, state-owned CPC Corp. Taiwan (中油), is expected to announce a similar price adjustment at noon on Sunday, which will take effect 12 hours later.

(By Han Ting-ting and Frances Huang)
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