Oil Price Hike of Up to P5 Per Liter Expected Next Week Amid Middle East Tensions

MANILA, Philippines — Domestic oil firms are expected to raise pump prices by up to P5 per liter next week, citing fears of further supply disruptions in the Middle East. This comes after recent price cuts. Industry estimates point to a potential price hike of P4.50 to P5 per liter for diesel and P4 to P4.50 per liter for gasoline, based on four-day movements in the Mean of Platts Singapore and foreign exchange rates. Jetti Petroleum president Leo Bellas said prices rose following the resumption of hostilities between the United States and Iran over mining in the Strait of Hormuz, a key trade route for oil and gas shipments. The renewed tensions have heightened concerns over more disruptions to energy flows from the Middle East, where the Philippines has historically sourced the majority of its crude oil supplies. Bellas stated that the US strike on Larak, Iran’s missile response against US interests in the Middle East, and US President Trump’s renewed threats against Kharg Island have created renewed risk of escalation in the region after more than a month of relative calm. Global diesel markets remain on edge amid refinery disruptions around the world, which further squeeze already-tight inventories. At the same time, weaker flows through the Strait of Hormuz are exerting upward pressure on prices. Bellas explained that gasoline fundamentals remain firm, supported by low inventories and resilient demand, and that uncertainty over supply security continues to support Asian gasoline prices. The final adjustments, expected to be announced on Monday, will still depend on the outcome of the last trading day. Last Tuesday, fuel retailers rolled back gasoline prices by around P0.30 per liter, while the cost of diesel and kerosene declined by nearly P4 per liter. Source: Philstar Nation