Domestic fuel prices set to rise for 4th consecutive week

2017/11/10 14:38:26 fontsize-small fontsize-default fontsize-big
Domestic fuel prices set to rise for 4th consecutive week

Taipei, Nov. 10 (CNA) Domestic gasoline and diesel prices are expected to move higher for the fourth consecutive week next week, reflecting a further spike in international crude oil prices, market sources said Friday.

Political tensions in the Middle East gave a boost to crude oil prices, sending international crude to a 28 month high overnight, which is expected to prompt state-owned CPC Corp. Taiwan (中油) to raise gasoline prices by NT$0.6-0.7 (US$0.0199-US$0.0232) per liter and diesel prices by NT$0.7 per liter next week, the sources said.

If the forecast is accurate, CPC will have increased domestic fuel prices for a fourth straight week after an increase of NT$0.5 per liter for gasoline and NT$0.6 per liter for diesel last week.

CPC is scheduled to announce its prices for next week at noon on Sunday and put them into effect 12 hours later.

If CPC adjusts its fuel prices for the coming week as forecast, prices at the pump will rise to NT$24.3 per liter for super diesel, NT$26.4-NT$26.5 for 92 octane unleaded gasoline, NT$27.9-NT$28.0 for 95 octane unleaded and NT$29.9-NT$30.0 for 98 unleaded, the sources said.

Worries over a global supply glut have eased to some extent after political tensions escalated in the Middle East when Yemen's Houthi militias launched a missile attack against Saudi Arabia on Saturday.

Saudi Arabia has accused Iran of being behind the missile attack, while Washington took the side of Riyadh, condemning Tehran and saying the military action posed a grave threat to peace in the Middle East.

In addition to the missile attack against Saudi Arabia, a move by the kingdom's Crown Prince Mohammed bin Salman to detain dozens of high-profile figures over the weekend sent crude prices higher, the sources said.

The arrests included 11 princes, former ministers, and the billionaire Prince Alwaleed bin Talal, during an anti-corruption investigation being used by the crown prince to consolidate power.

CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.

Due to the rise in international crude oil prices, CPC was calculating the average price of crude oil at US$62.36 per barrel as of Thursday, up US$2.98 per barrel from a week earlier, according to its website.

(By Liao Yu-yang and Frances Huang)

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