Fuel Prices Set to Rise Again Next Week Amid Middle East Conflict

MANILA, Philippines — Another fuel price hike is expected on Sept. 15, amid the continuing conflict in the Middle East. According to estimates from Jetti Petroleum president Leo Bellas, diesel prices may increase by P2 to P2.50 per liter. Gasoline prices may have bigger price jumps, reaching P4.50 to P5 per liter, the second time fuel prices will reach that level after this week. “Oil prices have rallied as the intensifying conflict in the Middle East tied to the US-Israel war with Iran heightened concerns about oil flows from the region,” he said. Asian gasoline, in particular, saw significant upward price adjustments due to strong demand despite issues on supply, Bellas sadi. “Depressed Middle East exports and Russia’s gasoline export ban further contributed to the supply concerns,” he added. Bellas’ estimates were based on the first four days of trading at the Mean of Platts Singapore (MOPS), and foreign exchange movements. MOPS is the basis for the pricing of refined petroleum products in Southeast Asia. Official price movements will be released on Monday. This week, oil firms implemented an increase of up to P4.69 per liter for gasoline; P5.18 per liter for diesel; and P5.58 per liter for kerosene. In a recent media briefing, Energy Secretary Sharon Garin said the increases were “driven largely by higher international oil prices following renewed tensions affecting energy flows through the Middle East.” “The depreciation of the Philippine peso against the US dollar has also added pressure on domestic pump prices because we buy them in dollars, not in Philippine peso,” she said. Transport group Manibela announced a nationwide transport strike on Monday, Sept. 14, in anticipation of the next oil price increase. —With a report from Chelsy Claire Perez /das