Philippines Braces for Significant Oil Price Hike Next Week Amid Middle East Tensions

MANILA, Philippines — Fuel retailers are poised to implement a substantial price hike next week, with increases of up to P5 per liter anticipated for gasoline and diesel. This comes after a period of price cuts this week and is driven by renewed attacks in the Middle East, which have heightened concerns over energy supply disruptions. Jetti Petroleum’s Leo Bellas indicated in an advisory that diesel prices could rise by P4.50 to P5 per liter. Gasoline is also expected to become more expensive, with an estimated increase of P4 to P4.50 per liter. Bellas explained that oil prices have surged due to the resumption of hostilities between the US and Iran over maritime activities in the Strait of Hormuz. He cited the US strike on Larak, Iran’s missile response against US interests in the Middle East, and renewed threats from US President Trump against Kharg Island as factors creating a renewed risk of escalation in the region. These price forecasts are based on the first four days of trading at the Mean of Platts Singapore (MOPS), which serves as the basis for pricing refined petroleum products in Southeast Asia, as well as foreign exchange movements. The estimates could still be subject to change as one trading session remains for the week.