Taiwan's Oil Prices: Gasoline Down, Diesel Up This Week

Navigating the Fluctuations: 中油 (CPC) Adjusts Fuel Costs in Response to Global and Local Pressures

Effective from midnight on the 24th, 中油 (CPC), Taiwan's state-owned oil company, has announced adjustments to domestic fuel prices. Gasoline prices will decrease by NT$0.3 per liter, while diesel prices will increase by NT$0.1 per liter. This translates to retail prices of NT$28.9 per liter for 92-octane unleaded gasoline, NT$30.4 per liter for 95-octane unleaded gasoline, NT$32.4 per liter for 98-octane unleaded gasoline, and NT$28.0 per liter for super diesel.

This week's adjustments include the implementation of a stabilization mechanism. Gasoline prices absorbed NT$0.9 per liter, and diesel prices absorbed NT$0.5 per liter.

中油 (CPC) explained that the recent rise in international oil prices is attributable to escalating geopolitical tensions in the Middle East. The average price of the 7D3B benchmark increased by $1.27, coupled with a NT$0.072 depreciation of the New Taiwan dollar against the US dollar, resulting in an overall increase of 1.60%.

According to the floating oil price adjustment mechanism, gasoline and diesel prices should have increased by NT$0.6 per liter. However, to keep prices lower than those in neighboring Asian countries (Japan, South Korea, Hong Kong, and Singapore), 中油 (CPC) absorbed NT$0.7 per liter for gasoline and NT$0.3 per liter for diesel. As the price of 95-octane unleaded gasoline exceeded NT$30 per liter after the absorption, the oil price stabilization measures were triggered. The first phase involved absorbing 25% of the adjustment, rounding off to the nearest tenth of a dollar, which led to a further absorption of NT$0.2 per liter for both gasoline and diesel. With the dual stabilization mechanisms in place, gasoline prices absorbed a total of NT$0.9 per liter, and diesel prices absorbed NT$0.5 per liter, resulting in an actual decrease of NT$0.3 per liter for domestic gasoline and an actual increase of NT$0.1 per liter for domestic diesel.