CPC Corporation Keeps Domestic Fuel Prices Unchanged Amid Global Market Fluctuations

CPC Corporation announced today that gasoline and diesel prices will remain unchanged from midnight on September 28 through midnight on October 4. According to the announcement, the price of 95-octane unleaded gasoline will stay at NT$32.7 per liter with no adjustments made. This move is a response to recent high-level fluctuations in international oil prices driven by shifting situations in the Middle East, aiming to cushion the immediate impact on domestic consumers and businesses.

As Taiwan's primary state-owned petroleum supplier, CPC has long played a crucial role in price adjustments. Its pricing mechanism combines international market trends, import costs, and government-established minimum selling prices, and is announced through the "oil price adjustment mechanism" at the beginning of each month or under special circumstances. The retention of 95-octane unleaded gasoline at NT$32.7 is close to the price from the previous period, indicating that CPC has chosen to maintain stability during this timeframe to prevent price volatility from compounding the economic burden on the public.

Since the first half of this year, international crude oil prices have repeatedly broken historical highs due to rising political tensions and the risk of war in the Middle East. As an energy-importing nation, every shift in international oil prices is directly passed on to domestic fuel prices. Although CPC stated in this announcement that prices will remain unchanged, its actual costs may still be affected by rising imported oil prices. To address this, CPC adopted a short-term unadjusted strategy to prevent drastic price shifts caused by short-term volatility and to provide the market with a certain degree of adjustment space.

Domestically, the government also oversees the reasonableness of fuel prices through the coordination of the Bureau of Energy and the Ministry of Finance. Although Taiwan's fuel prices are determined by the market, they are subject to "minimum selling price" and "maximum selling price" restrictions to ensure that consumers do not suffer unfair price pressure due to violent fluctuations in the international market. The decision to keep prices unchanged this time also aligns with the government's policy direction of "stabilizing oil prices and safeguarding people's livelihoods," while providing a solid foundation of price stability for upcoming energy conservation and carbon reduction policies.

The market response to this announcement has been relatively calm. Car owners and logistics operators generally indicated that keeping fuel prices unchanged in the short term helps alleviate cost pressures, especially against a backdrop of heightened economic uncertainty. However, fuel suppliers and energy analysts also pointed out that if international oil prices remain high, the market may still face pressure for readjustment in the future. CPC has stated that it will continue to monitor international oil price trends and make corresponding adjustments during the next adjustment cycle as circumstances warrant, in order to maintain a dual balance between the market and consumers.

In summary, CPC's announcement to keep gasoline and diesel prices unchanged from September 28 to October 4, and to maintain the price of 95-octane unleaded gasoline at NT$32.7, is primarily intended to ease the immediate burden on the public and businesses amid a severely volatile international oil price environment, while leaving room for flexibility regarding potential future price adjustments. This action not only reflects CPC's prudent handling of market risks but also aligns with the Taiwan government's policy objectives of stabilizing fuel prices and protecting public livelihoods.