Fuel price hike of nearly P11 per liter expected in PH next week

MANILA – Domestic fuel prices are likely to increase by as much as PHP10.50 per liter due to the sustained escalation of tensions in the Middle East.

Citing price developments in the Asian market and the movement of foreign exchange as of Thursday, Jetti Petroleum president Leo Bellas, in a message to journalists on Friday, said diesel prices are forecast to rise between PHP10 and PHP10.50 per liter and gasoline between PHP4.50 and PHP5 per liter.

These figures are way higher than the PHP4.69 per liter hike in gasoline prices and PHP5.18 per liter for diesel this week, based on data released by the Department of Energy (DOE) on Tuesday. Kerosene also rose by PHP5.58 per liter.

“Oil prices surged higher after attacks in the Strait of Hormuz and the Red Sea, the region’s two most important oil transit routes, further deepened supply disruption worries,” Bellas said.

He explained that “attacks on Saudi Arabia’s East-West pipeline, a key oil route for bypassing the Strait of Hormuz, forced a shutdown of the system and triggered concerns that the loss of Saudi export capacity would severely affect global energy supplies.”

“Escalating tensions in the Middle East, a top supplier of diesel and crude oil grades best suited for diesel production, and attacks in refineries in Russia, which is another major diesel supplier, have pushed prices to record highs due to mounting concerns of severe product flow constraints and tight availability,” he said.

For Asia alone, Bellas said, gasoline prices remain on the rise "due to firm regional demand and concerns that hostilities in the Red Sea could further curb supplies from the Middle East.”

DOE officials earlier said the current jump in oil prices is expected to continue, given the Middle East crisis.

They, however, assured the public that domestic fuel supply remains above regulatory requirements, and subsidies are continuously given to qualified beneficiaries, such as public utility vehicle (PUV) drivers. (PNA)