Fuel prices are set to climb: Diesel by NT$0.2 and gasoline by NT$0.3
Gasoline and Diesel Prices Rise in Taiwan Due to International Crude Oil Price Increase
Gasoline and diesel prices in Taiwan have increased this week, following a surge in international crude oil prices. The rise in prices is primarily due to geopolitical tensions and supply concerns, according to CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化).
Effective today, the price of 92-octane unleaded gasoline at CPC stations will rise to NT$27.1 per liter. The price of 95-octane unleaded gasoline will increase to NT$28.6 per liter, and 98-octane unleaded gasoline will cost NT$30.6 per liter. Premium diesel will cost NT$25.8 per liter at Formosa pumps, and NT$26 per liter at CPC stations.
The recent surge in crude oil prices is a direct consequence of geopolitical events and supply tightening, especially related to sanctions on Russia and other global market dynamics in late July and early August 2025. The European Union announced new sanctions on Russia, causing worries about tightening supply, and geopolitical uncertainties and shifting trade policies also played a significant role in pushing prices higher.
According to Formosa, these concerns pushed up international crude oil prices last week, which subsequently influenced domestic fuel prices in Taiwan. Front-month West Texas Intermediate crude oil futures gained 3.33 percent to US$67.33 per barrel last week, and front-month Brent crude oil futures rose 2.97 percent to settle at US$69.67 per barrel.
International crude oil prices rose by NT$0.2 per liter for gasoline and NT$0.3 per liter for diesel at domestic fuel stations this week. The usual lag time for international price changes to reflect domestically (about 2–3 weeks) has contributed to the recent increase in pump prices in Taiwan, with diesel price increases often more pronounced due to tighter regional supply and strong demand.
The end of the losing streak in international crude oil prices was due to US President Donald Trump's administration announcing agreements with the EU and a number of other trading partners over the week. The agreements boosted market optimism that an economic slowdown could be avoided, and raised hopes for oil demand, according to CPC.
However, Trump also threatened to impose "secondary tariffs" on countries that buy Russian oil, which could potentially further disrupt global oil supplies and drive prices higher. Market concerns over potential disruptions to Russian supply have contributed to the recent surge in crude oil prices.
In summary, the recent rise in Taiwan’s gasoline and diesel prices is a direct consequence of international crude oil price increases caused by geopolitical events and supply tightening, especially related to sanctions on Russia and other global market dynamics in late July and early August 2025. Consumers should expect pump prices to remain high for the foreseeable future, as international crude oil prices continue to be influenced by global market dynamics and geopolitical tensions.
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The rise in gasoline and diesel prices in Taiwan is also impacting the local finance industry, as consumers struggle to afford higher fuel costs and the transportation sector faces increased operating expenses.
Consequently, the energy sector, particularly oil and gas companies, are expecting continued revenue growth due to the higher prices, but they also face potential challenges from ongoing geopolitical tensions and market volatility.
