Domestic fuel prices could increase sharply next week as escalating tensions in the Middle East continue to disrupt global oil supply routes.
Jetti Petroleum president Leo Bellas said Friday that diesel prices are projected to rise by Php 10 to Php 10.50 per liter, while gasoline may increase by Php 4.50 to Php 5 per liter, based on Asian market movements and foreign exchange rates as of Thursday.
The projected hikes are significantly higher than this week’s adjustments, when gasoline rose by Php 4.69 per liter, diesel by Php 5.18 and kerosene by Php 5.58, according to Department of Energy data.
Bellas said oil prices climbed following attacks in the Strait of Hormuz and the Red Sea, two major transit routes for global energy shipments.
He added that disruptions to Saudi Arabia’s East-West pipeline and attacks on Russian refineries have heightened concerns over tighter crude and diesel supplies.
In Asia, gasoline prices have also remained elevated due to strong regional demand and concerns that continuing hostilities in the Red Sea could further restrict supplies from the Middle East.
DOE officials earlier said upward pressure on oil prices could persist as the Middle East crisis continues.
The department, however, said domestic fuel inventories remain above regulatory requirements and that subsidies continue to be provided to qualified beneficiaries, including public utility vehicle drivers.