DIESEL and gasoline prices are expected to spike again next week, as global oil supply continues to tighten due to developments in the Middle East and Russia, local oil industry sources said on Friday.
They said diesel prices are expected to increase between P6 and P6.50 per liter, while gasoline prices are seen to spike from P5.50 to P6 per liter.
These estimates are based on 4-day trading of Mean of Platts, Singapore, the pricing basis for refined goods in Southeast Asia.
“World oil prices have again increased significantly due to concerns of further disruption to oil supply as the Strait of Hormuz remains largely closed to vessel traffic, and due to growing security risks in the Bab el-Mandeb Strait, which in turn expanded the conflict and raised the threat to global energy supplies and trade beyond the Persian Gulf,” a source said.
“In relation to this, diesel prices went up during the beginning of the week amid renewed supply concerns. The Persian Gulf is a major source of diesel and tanker flows were only beginning to recover before hostilities flared again, but renewed military strikes and a reciprocal blockade of the Strait of Hormuz by the US and Iran have raised fresh supply concerns. Furthermore, refinery disruptions and further constraints on Russian oil supply are also keeping middle distillate supplies tight and prices elevated,” the source added.
