Fuel Prices in Philippines May Exceed P100 Next Week Amid Geopolitical Tensions

MANILA, Philippines — Motorists may face another round of steep fuel price increases next week, with gasoline seen rising by more than P4 per liter and diesel and kerosene by at least P2, according to the Department of Energy. The projected increases could push premium gasoline, diesel and kerosene further above P100 per liter at some Metro Manila stations by Tuesday, September 15, after similarly large adjustments took effect this week. DOE Oil Industry Management Bureau Director Rino Abad said Friday that trading so far pointed to another increase across all three petroleum products. "Asahan natin na may increase pa rin next week. Ang diesel and kerosene, medyo maliit na, halos kalahati no'ng last week. Itong gasolina ay may kataasan pa rin, halos kapareho pa rin ng range nung last week," Abad told DZMM. ("Let's expect another increase next week. For diesel and kerosene, it is relatively smaller, almost half of last week's level. Gasoline remains on the higher side, almost within the same range as last week.") Based on prevailing Metro Manila pump prices after the September 8 adjustment, another increase of around P4 could push the highest gasoline prices to roughly P106 per liter. Premium diesel, which already sells for more than P100 per liter at some stations, could rise to around P104, while kerosene could reach roughly P103 to P138 per liter depending on the station. The estimates remain preliminary. Oil companies typically announce final adjustments on Monday after accounting for the full week's movements in international fuel prices and the peso-dollar exchange rate. On Tuesday, gasoline prices rose by P4.69 per liter, diesel by P5.18 and kerosene by P5.58. Abad said escalating tensions around the Red Sea are adding another risk to oil markets already been strained by disruptions around the Strait of Hormuz. Iran-backed Houthi forces this week seized the strategic Yemeni port city of Mokha near the Bab el-Mandeb Strait, raising concerns over shipping through a major route connecting the Red Sea to the Gulf of Aden and, farther north, the Suez Canal. The Bab el-Mandeb is an important passage for energy shipments and other trade between Asia, the Middle East and Europe. Its strategic importance has grown as traffic through the Strait of Hormuz has faced disruptions amid the conflict involving Iran and the United States. "Ito ho 'yung sinasabi namin na posible pang magdagdag doon sa nangyayari pa sa Strait of Hormuz," Abad said. ("This is what we have been saying could add another factor on top of what is already happening in the Strait of Hormuz.") The Houthi advance has heightened concerns that disruptions could spread to another major maritime chokepoint. Reuters reported Friday that Brent crude had climbed to nearly $110 a barrel after surging about 6% in the previous session amid worries over supply routes in both Hormuz and the Red Sea.