Gas prices set to decrease by NT$0.1 forthcoming week
In an unexpected turn of events, retail gasoline and diesel prices in Taiwan are set to decrease, bucking the global trend of rising international crude oil prices. The announcement was made by CPC Corp, Taiwan and Formosa Petrochemical Corp, the country's two major oil distributors.
Despite a 2.25% increase in front-month Brent crude oil futures, settling at US$68.3 per barrel last week, the companies have decided to adjust domestic fuel prices downward. This move is primarily due to government policy and domestic market factors, as the companies sometimes deviate from the weighted oil price formula (70% Dubai crude, 30% Brent) to keep prices lower than those in major neighboring markets.
This strategy is part of a government directive aimed at maintaining price stability and competitiveness. For instance, in late June 2025, when international crude prices declined sharply, CPC and Formosa still raised gasoline and diesel prices slightly, but absorbed some costs to comply with this policy and market competition.
Conversely, in early July 2025, despite crude oil prices rising by about 2.25%, domestic gasoline and diesel prices actually dropped by NT$0.1 and NT$0.3 per liter respectively. This drop was attributed to factors beyond crude prices, such as the exchange rate for the New Taiwan dollar and intense domestic market competition.
The companies balance global oil market trends with local factors to set fuel prices that are not strictly tied to international crude oil movements. However, they did not provide details on how the various factors mentioned affected the prices at domestic fuel stations in Taiwan.
Meanwhile, Taiwan’s airlines are increasing fuel surcharges on international flights due to soaring jet fuel prices, reflecting the direct pass-through of global oil price increases in sectors less regulated by government policies.
Effective today, the price of 98-octane unleaded gasoline at CPC and Formosa stations will be NT$30.5 per liter. The price of 92-octane unleaded gasoline will be NT$27 per liter, while premium diesel will cost NT$25.6 per liter at CPC stations and NT$25.4 at Formosa pumps. The companies did not specify the exact dates when the price drop at domestic fuel stations in Taiwan will take effect.
Despite the drop in domestic fuel prices, the companies did not mention any specific impact of the price increase in international crude oil prices on their operations or the economy of Taiwan.
In light of the government's directive, the energy sector companies CPC Corp and Formosa Petrochemical Corp have decided to adjust domestic fuel prices downward, despite an increase in front-month Brent crude oil futures, which is a significant part of the finance industry. This move is a testament to their commitment to maintaining price stability and competitiveness in the industry, even when factors like crude oil prices are on the rise.
