Corp., raised the prices of both by NT$0.4 and NT$0.5 a liter, respectively, effective 12 a.m. this morning. The upward adjustment brought the prices of 98-RON, 95-RON and 92-RON gasoline and premium diesel fuel to: NT$30.5, NT$29, NT$28.3, and NT$25.8 per liter, respectively, all historic highs.
At press time, Formosa Petrochemical Corp., the other major refiner, has not made any announcement on whether to raise prices, yet past experience suggests the company will raise its prices by the same level as CPC Corp.
CPC announced the price hike after crude oil for August delivery rose 41 U.S. cents, or 0.6 percent, to close at US$71.09 a barrel on the New York Mercantile Exchange Monday, the highest since August 25, on speculation inventories will decline as demand increases later in the year.
UBS AG, Europe’s largest bank by assets, raised its 2007 forecast for West Texas Intermediate by 6.5 percent to US$65 a barrel from US$61 because of low inventories and strong demand.
The rise in gasoline prices has widespread ramifications in the society as retail operators, in particular convenience stores and hypermarkets, have already hiked up prices of various mass consumption goods and are expected to raise prices again starting in August.
Nearly all milk brands will raise prices starting on Aug. 1, some by as much as 10 percent. Milk powder makers, including Anyi and Feng Li Fu, have already raised their prices by 20 percent at the end of June.
Ice cream makers, such as Ming Chih, Pai Chi and Hsiao Mei, are also expected to raise prices, according to the Central News Agency.
As for toilet paper, a six-pack is now sold for NT$119 at several hypermarkets, an increase from the NT$99 or NT$109 before.
According to various consumer protection organizations, certain retail operators have raised prices of rice from NT$160 per four-kilogram bag to NT$168 at the end of June. One cooking oil company has raised its price from NT$94 to NT$119 at the end of June.
China Airlines and EVA Airways Corp., Taiwan’s two largest carriers, meanwhile, will increase fuel surcharges on overseas flights by 17 percent starting July 16, because of a rise in the price of jet fuel, the transport ministry said. Taiwan-based airlines will raise surcharges on short-haul flights, including to Hong Kong, to US$17.5 each way from US$15, the ministry said on its Web site Monday. The levy on flights to the U.S. and Europe will rise to US$45.5 each way from US$39.
