MOTORISTS are in for a big spike in fuel prices next week, as the global oil market continues to react to mounting tensions in the Middle East and Russia, local oil industry sources said on Friday.
The per-liter price of diesel is expected to range between P4.50 and P5, and gasoline between P4 and P4.50.
The estimates are based on the four-day trading of Mean of Platts, Singapore, the pricing index of refined goods in Southeast Asia.
“Oil prices rose as the resumption of hostilities between the US and Iran over mining in the Strait of Hormuz raised concerns about more disruptions to energy flows from the Middle East,” one source said. “The US strike on Larak, Iran’s missile response against US interests in the Middle East, and US President Trump’s renewed threats against Kharg Island have created renewed risk of escalation in the region after more than a month of relative calm.”
Diesel prices increased as inventories tightened due to disruptions at refineries around the world, especially in the Middle East and in Russia where continued Ukrainian drone attacks on Russian energy infrastructures have compounded the supply concern,” the source added.
Gasoline prices remained high, due to “low inventories and resilient demand, and uncertainty over supply security with China stockpiling ahead of the Golden Week holidays coupled with the developments in the Middle East,” the source said.
