Philippines Faces Significant Fuel Price Hikes Next Week; Crude Market Fluctuations Cited

Another round of big-time increase in pump prices are expected to be implemented in the coming week. Citing full-week (September 14 to 18) Mean of Platts Singapore (MOPS) trading and foreign exchange averages, an oil industry source said the estimated movements next week are as follows: The latest fuel price forecast is lower than the previous estimates of over P10 to P11 per liter for diesel. "Oil prices have pulled back as recent efforts by Saudi Arabia to restore export capacity eased near-term supply anxiety and concern," the source said. "Saudi Arabia is seeking to return half of its export capacity via the East-West pipeline within days and offering more cargos to Asian refiners through ship-to-ship transfers off the coast of Oman," the source added. Fuel firms announce price adjustments every Monday, to be implemented on the following day. This week, oil companies raised pump prices by over P5.60 per liter for gasoline, above P4.30 per liter for diesel, and more than P4.60 per liter for kerosene. "Prices fell further after China reportedly asked Iran, acting on a request from Saudi Arabia, to limit attacks by Houthi rebels on Saudi oil infrastructure. However, tight physical supplies limited further declines," the source said. The source further said that vessel traffic in the Strait of Hormuz continues to fall and remains risky while ongoing Saudi-Houthi tensions threaten renewed disruptions to Red Sea shipping and regional energy infrastructure. "Rising feedstock risks for Asian refiners and tightening supplies due to refinery disruptions and maintenance have continue to support the prices of middle distillates and diesel this week. Tight prompt supply and future supply concerns amid firm demand have driven Asian gasoline prices higher week-on-week as well," the source said. — VDV, GMA News