TWD depreciation may lift oil prices by NT$ 0.5 per liter
By Ted Chen, The China PostTAIPEI, Taiwan -- Prices for gasoline and diesel are anticipated to rise by NT$0.4 to NT$0.5 per liter starting next Monday, propelled by the continued devaluing of the New Taiwan dollar, coupled with fluctuations in the international crude oil markets, according to the Chinese Petroleum Corporation (CPC) floating index.
February 1, 2013, 1:01 am TWN
The latest price hike is the largest in 3 months, with the per-liter price of 95-octane gasoline reaching NT$35.6, encroaching on the highest recorded price of NT$36.3.
International oil prices are rising, propelled by favorable economic statistics from the European Union.
Currently, March contracts for West Texas Intermediate stands at US$97.94 per barrel, representing the highest in four months, and a rise of 6.4 percent month-on-month.
As of today, March contracts for Brent Crude stands at US$114.63, representing a slight decline of 0.27 percent from the previous trading session.
Following a recent U.S. Energy Information Administration announcement of an increment of 5.9 million barrels in crude oil reserves, industry observers are expecting demand to ease off.
In response, the CPC has pledged to persist in its policy to not initiate price hikes during the Chinese New Year's Holidays, and that the price changes required to reflect fluctuations in the international oil markets will be rolled over to after the holidays' conclusion.
CPC also stated that each increment of US$1 in international per-barrel oil prices will impact domestic gasoline and diesel prices by NT$0.2.
In addition, as the New Taiwan dollar depreciates against the U.S. dollar, each negative increment of NT$1 will impact domestic gasoline and diesel prices by NT$0.6 per liter to fully reflect costs.