They expect the prices of gasoline and diesel to go up NT$1.60 and NT$1.80 per liter respectively next month, unless the government decides to abandon the floating fuel pricing mechanism that reflects fluctuations in global crude oil prices reimposed in July.

The government policy directly affects the fuel prices of the state-owned oil company — CPC Corp., Taiwan — and will also indirectly influence the price tags of FPCC on the domestic market.

The FPCC executives pointed out that crude oil prices did take a dive of US$16 a barrel in three trading sessions to fall to US$128 a barrel on the spot market last week.

However, the average price still reached US$136 during the period of July 1-18, well above the average of US$127.80 for the month of June.

The company would not rule out a new hike for August unless the crude price takes a tumble to US$110 and stays at that level until the end of July, they said.

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