DIESEL and gasoline prices are expected to increase next week as the global market reacts to the recent escalation of US-Iran hostilities and attacks on vessels crossing the Strait of Hormuz, local oil industry sources said on Friday.
They said diesel prices will increase between P2 and P4 per liter, while gasoline prices are expected to spike by up to P1 per liter.
These estimates are based on the 4-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia.
“Oil prices rose again this week, as both the US and Iran have resumed trading attacks on each other. Thus, diesel and middle distillates’ prices have increased as supplies continue to tighten, with availability remaining constrained. Furthermore, the potential loss of Russian diesel exports is also adding another layer of support as Russia’s energy infrastructure continues to sustain damage from intensified Ukrainian drone attacks,” a local industry source said.
“Meanwhile, gasoline prices have weakened slightly as the Asian regional market remained balanced amid ample supplies and steady regional demand. But looking ahead, prices are likely to increase again as global gasoline markets are tightening amid the peak Northern Hemisphere summer demand season and supply constraints due to refinery maintenance and run cuts,” the source added.
This week, and based on most price adjustment bulletins, diesel prices spiked by P3.30 per liter, while gasoline prices went up by P0.25 per liter.
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