State-run oil company CPC Corp. announced yesterday plans to slash gasoline and diesel prices by NT$0.1 to NT$0.2 as international crude oil prices drop due to an increase in oil supply.

The price cut is effective today. It was the third price cut this year, and a total reduction of NT$0.9 has been made.

Currently the prices for 92-octane, 95-octane and 98-octane unleaded gasoline at CPC Corp. stations stand at NT$33.4 a liter, NT$34.9 a liter and NT$36.9 a liter, respectively, while the price of diesel comes in at NT$32.2 per liter.

CPC said that the production of crude oil in Libya has increased, while oil fields in South Sudan have also resumed operation. In addition, as Iran scales back its nuclear development scheme, western powers are due to reduce their sanctions levied against Iran. As such, oil supply in the globe is expected to surge, resulting in a decrease in oil prices.

This week's 7D3B (70 percent Dubai and 30 percent Brent crude) price index was at an average of US$104.52 per barrel, down US$0.52 from last week's US$105.04, CPC said.