MANILA – Fuel prices are projected to rise anew next week to as high as PHP1.60 per liter amid continued geopolitical concerns in the Middle East.
Citing price developments as of Thursday, Jetti Petroleum president Leo Bellas said diesel prices are seen to increase between PHP0.80 to PHP1 per liter and gasoline between PHP1.40 to PHP1.60 per liter.
On Tuesday, gasoline prices rose by PHP0.60 per liter, and diesel and kerosene by PHP1.20 per liter.
"Uncertainty in the Middle East continues to support diesel and gasoline prices this week as the underlying crude prices continue its upward trajectory," Bellas said.
“Pushing gasoline prices even higher is the lower exports from China and South Korea owing to lower production over the Lunar New Year holidays."
Bellas also pointed out that “the risk of war between the US and Iran remains the key driver supporting crude oil prices.”
"With negotiations still unresolved and both sides signaling readiness to escalate, the risk of a disruption-driven spike is keeping prices elevated,” he said.
Additional risks to prices include “the temporary closure of parts of the Strait of Hormuz for live-fire drills reported by Iran last week (that) underscored Iran’s capability to disrupt transit in the strait even if only briefly.”
Bellas noted that these risks are partly countered by the “renewed tariff uncertainty” in the US.
“Furthermore, the potential resumption of production increases by OPEC+ from April following a Q1 (first quarter) pause, could drive inventory builds and help temper price gains,” he added. (PNA)