Fuel Prices Poised for Significant Hike Next Week Amid Peso Decline, Mideast Tensions

Motorists in the Philippines are bracing for significant price hikes in diesel and gasoline next week, driven by a continuing decline in the Philippine peso and persistent instability in the Middle East affecting global oil supply and production. According to an industry source, projected pump prices for the week of September 14 could see further increases, adding to already substantial hikes this week. Gasoline prices rose by up to P4.70 per liter, diesel by up to P5.20 per liter, and kerosene by as much as P5.60 per liter. These forecasts are based on a full week's tracking of the Mean of Platts Singapore (MOPS) for refined oil products, forex averages, and other contributing factors. The surge in prices is attributed to escalating attacks against shipping and energy infrastructure, which pose risks to oil transport already impacted by the ongoing conflict between the United States and Iran. The recent aerial attacks on Saudi Arabia's East-West pipeline, prompting a shutdown of its vital oil conduit, have further exacerbated the situation. Meanwhile, the Philippine peso suffered its 24th record low of the year on Friday, closing at P62.68 against the US dollar. Movements in global oil prices and ongoing geopolitical concerns were cited as key factors in the peso's weak performance. Data from the Department of Energy (DOE) for the current week indicates the cumulative net increase in fuel prices for the year. The anticipated price hikes are likely to place additional strain on household budgets and potentially fuel inflation concerns. Information source: GMA Money Philippines