Formosa Petrochemical to cut fuel prices next week

2018/03/10 19:08:25 fontsize-small fontsize-default fontsize-big
Formosa Petrochemical to cut fuel prices next week

Taipei, March 10 (CNA) Formosa Petrochemical Corp., a private fuel supplier in Taiwan, said Saturday that it has decided to lower domestic gasoline and diesel prices for next week in the wake of renewed concerns over a supply glut.

An increase in U.S. oil production has raised fears over global oversupply, while a possible trade war after the tariffs imposed by Washington on steel and aluminum dampened energy traders' sentiment, Formosa Petrochemical said.

As a result, the private oil company announced cuts to both gasoline and diesel prices by NT$0.2 (US$0.007) per liter, effective at 1 a.m. Monday, ending a two-week rising streak.

After the latest adjustments, prices at Formosa Petrochemical gas stations islandwide will rise to NT$23.6 per liter for super diesel, NT$26.1 per liter for 92 octane unleaded, NT$27.5 per liter for 95 unleaded, and NT$29.6 per liter for 98 unleaded, Formosa Petrochemical said.

The global oil market took a beating after data released by the U.S. Energy Information Administration (EIA) on Wednesday showed U.S. shale oil production hit a record of about 10.4 million barrels per day in the week to March 2, market analysts said.

Meanwhile, U.S. President Donald Trump signed an order to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, raising concerns over a possible trade war by inviting trading partners to retaliate, which could undermine the global economy, analysts said.

The losses suffered by the oil market were capped to some extent in the wake of the EIA data which showed crude inventories in the U.S. market rose by 2.4 million barrels in the last week, compared with an earlier market estimate of 2.7 million barrels, analysts added.

Under such circumstances, Formosa Petrochemical's main competitor state-run CPC Corp., Taiwan, is likely to announce similar price adjustments on Sunday.

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. Based on the latest fluctuations in international crude oil prices, CPC's average price for crude oil was calculated at US$62.57 per barrel as of Thursday, down US$0.95 from a week earlier, according to its website.

(By Lin Meng-ju and Frances Huang)
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