CPC Holds Fuel Prices Steady Despite Rising Crude Costs

CPC Corp. will keep domestic gasoline and diesel prices unchanged for the week starting September 21. This decision holds retail rates steady despite a significant increase in international crude oil costs.

The state-owned supplier maintains its recommended retail price for 92-octane gasoline at NT$31.2 per liter. Diesel prices remain fixed at NT$29.9 per liter. These rates apply from midnight on Sunday through September 27.

Crude costs rise sharply

CPC’s floating price mechanism tracks a weighted average of Dubai and Brent crude. The average international crude price climbed from US$115.61 to US$125.76 per barrel this week. This shift reflects recent disruptions to Saudi Arabian pipelines.

A weaker Taiwan dollar also contributed to higher import costs. The currency averaged NT$31.827 against the US dollar this week, down from NT$31.556 last week. These factors increased CPC’s crude oil purchase price by 7.76 percent.

Company absorbs financial losses

CPC expects to absorb a loss of NT$9.3 per liter on gasoline sales next week. The estimated loss on diesel sales is NT$11.3 per liter. The company chose not to pass these costs to consumers to curb inflationary pressures.

Accumulated losses since the Middle East conflict began in February have reached NT$21.92 billion. CPC aims to keep domestic fuel prices lower than in neighboring markets. This strategy prioritizes economic stability over immediate profit recovery.

Recent price adjustments

CPC raised gasoline prices by NT$0.7 per liter earlier this week. Diesel prices increased by NT$0.6 per liter during the same period. These hikes followed the initial spike in crude oil prices.

The decision to freeze prices now contrasts with the recent increases. GN auto markets/energy reports that this move signals a shift in cost management strategy. The company balances financial health against the need for stable consumer costs.