DIESEL and gasoline prices are expected to increase slightly next week as the global market reacts to uncertainty in the Middle East, amid recent developments in the US-Iran peace deal, local oil industry sources said on Friday.
Sources said diesel prices could increase by P1.20 per liter, while gasoline prices could go up by P1.50 per liter.
These estimates are based on 4-day trading of Mean of Platts, Singapore, the pricing basis for refined goods in Southeast Asia.
A source said global prices could still be volatile despite the peace deal, amid rumors of recent attacks on a cargo vessel in the Strait of Hormuz.
“World crude oil prices have eased, despite tempered optimism over the US-Iran interim peace deal and ongoing negotiations. Sanctions waiver on Iranian oil, which will allow Iran-origin crude oil and other petroleum products into the market, is also influencing these prices,” a local oil industry source said.
“Asian diesel and middle distillates prices are relatively lower as the market expects a gradual rise in regional availability. Meanwhile, gasoline prices are expected to remain high due to increasing seasonal demand despite the prospect of recovering crude and product flows,” the source added.
“But despite the current market situation and amid the political agreement between the US and Iran, physical flows through the Strait and shipping activity have yet to normalize. Uncertainty remains over the durability of the US-Iran accord, with a recent incident of a suspected attack on a cargo vessel in the Strait of Hormuz,” the source said.
This week, local oil companies that released their price bulletins had the same adjustments, after cutting diesel prices by P9.04 per liter and gasoline prices by P3.90 per liter.
