Local fuel prices have been greatly fluctuating amid the COVID-19 pandemic. After gasoline prices fell to 1999 levels two weeks ago, they”ll soon be up again in their biggest jump in eight years. The reason? Some countries are considering ending their lockdowns, causing an increase in demand for crude oil. Starting Sunday midnight, a liter of gasoline and diesel will rise by NT$2 and NT$2.2, respectively. A liter of 92 unleaded will rise to NT$18.2 while 95 unleaded will rise to NT$19.7 and 98 unleaded gasoline will increase to NT$21.7. Premium diesel will cost NT$15.4.
On Sunday, cars drove one after another into this self-service gas station and drivers lined up in the hot weather to fill up their tanks. The reason? Fuel prices will rise on Sunday midnight. Gasoline prices on average will rise by NT$2, diesel prices will rise NT$2. The adjusted prices mean that a liter of 92 unleaded will stand at NT$18.2, 95 unleaded will stand at NT$19.7 and 98 unleaded gasoline will rise above the NT$20 mark at NT21.7. A liter of premium diesel will rise to NT$15.4. The magnitude of the price increases is the largest in the last eight years.
Taxi drivers are sighing. It’s now more expensive to fill up their petrol tanks than buy a bento lunchbox. But any hopes that fuel prices won’t continue to soar upwards maybe just wishful thinking. The main reason for all this is that the spread of the global pandemic is slowing and many countries are making plans to ease their lockdowns. Demand for crude oil is increasing and international oil prices have been rising for two weeks continuously. Local fuel prices are now following suit.
Voice of Liang Chi-yuan
Energy Expert
On Friday, prices had already reverted to US$30.86 per barrel. The main reason for this increase in Brent Crude is demand, which has increased compared with the previous week or the last few weeks. OPEC had also just reduced production on May 1 by 9.7 million barrels a day. It is this supply-and-demand factor that has caused a rebound in oil prices. They are likely to reach US$40 a barrel by the end of the year and possibly get close to US$50 a barrel.
Experts generally expect the price of oil to continue its rise. Members of the public who don’t want to feel the financial pinch should go out and refuel straight away before prices get any steeper.
