Domestic fuel prices could fall next week

Gasoline and diesel prices in Taiwan could fall next week after international crude oil prices edged lower over the past week, market sources said Friday.

Based on a floating pricing mechanism used by state-owned oil supplier CPC Corp., domestic fuel prices are expected to drop by NT$0.5 (US$0.02) to NT$0.6 per liter next week after a rise of NT$0.2 a liter this week, the sources said.

CPC adjusts domestic fuel prices on a weekly basis according to movements in a weighted oil price formula consisting of 70 percent Dubai crude and 30 percent Brent crude.

The price of a barrel of crude oil under the formula was US$55.91 as of March 12, down from US$58.84 the previous week, according to CPC's website.

If the expected drop in domestic fuel prices were to occur, prices at the pump would fall to NT$22.7 or NT$22.8 per liter for super diesel, NT$24.6 or NT$24.7 per liter for 92 octane unleaded gasoline, NT$26.1 or NT$26.2 per liter for 95 octane unleaded gasoline and NT$28.1 or NT$28.2 per liter for 98 octane unleaded gasoline.

Crude oil prices fell to a six-week low in U.S. markets overnight on rising oil reserves, while oil prices for April contracts shed 2.3 percent to US$47.05 a barrel on the New York Mercantile Exchange.

International crude oil prices have fallen more than 50 percent since mid-June 2014 because of falling demand and growing oil reserves in the U.S.

CPC Corp. is scheduled to announce its new fuel prices for next week at Sunday at noon.