GASOLINE and diesel prices are expected to increase for the third straight week next week, as the market reacted to recent geopolitical tensions and an increase in demand from countries, local oil companies announced on Friday.
They said diesel prices could increase from P1.30 to P1.50 per liter, and gasoline from P0.50 to P0.70 per liter.
These estimates are based on four-day trading of Mean of Platts, Singapore, the pricing basis for refined goods in Southeast Asia.
Next week’s possible fuel price movements are mostly due to geopolitical tensions, especially developments in Iran, the huge increase in demand from countries experiencing winter, and also to various global oil supply disruptions.
“Oil prices have been high this week as elevated geopolitical and military risk in the Middle East amid rising US-Iran tensions, including new sanctions on Iran’s shadow fleet and a visible US force deployment, have increased the uncertainty around Iranian supply continuity and broader stability in the region,” Jetti Petroleum president Leo Bellas said.
“Other related factors are the ongoing outage at Kazakhstan’s biggest oilfield; a major US winter storm, which has tightened near-term supply, and an EU import ban on refined products from Russian-origin crude could disrupt flows and tighten the physical market,” he added.
“Fuel prices are expected to increase next week, as oil rallied for 3 straight sessions, namely from Jan. 27 to 29, as traders priced in a weather-driven US supply disruption that shut in as much as 2 million barrels per day output. Other factors include the slow recovery of Kazakhstan’s Tengiz field after a fire/power issue; Rising Iran risk premium from geopolitical tensions; And the OPEC+ policy planning to pause its output hikes,” Department of Energy-Oil Industry Management Bureau director Rodela Romero said.
This week, local oil companies hiked diesel prices by P1.40 per liter, and gasoline by P0.40 per liter.
