DIESEL and gasoline prices are expected to increase for the fourth consecutive week because of geopolitical tensions and colder weather, local oil industry sources said Friday.
Forecasts show diesel prices will rise by P0.80 to P1 per liter, while gasoline prices will increase by P0.30 to P0.50 per liter.
These estimates are based on four days of trading on the Mean of Platts Singapore, the pricing benchmark for refined goods in Southeast Asia.
The expected price hikes are attributed to tensions between the US and Iran, the decision by OPEC+ to maintain current production levels, and increased oil demand from countries experiencing cold weather.
"Oil prices have remained volatile this week due to the developments of US-Iran tensions, the decision by OPEC+ to keep March production output unchanged, the US-India trade deal, and the large draw in US crude and diesel, and middle distillate inventories," said Leo Bellas, president of Jetti Petroleum.
"Diesel prices have remained high because of weather-related supply and demand issues, the continued geopolitical tensions in the Middle East, and Europe moving away from Russian oil products, which have caused supplies to be limited," Bellas added.
He noted that there will be fewer diesel exports from China, largely due to higher domestic demand expected during the Lunar New Year festivities.
"For gasoline, prices were trending lower at the start of the week. However, fast-rising crude prices spurred by potential US-Iran tensions and the upcoming increase in demand from the Lunar New Year festivities have stopped prices from going lower," Bellas said.
This week, diesel prices increased by P1.60 per liter, while gasoline prices rose by P0.80 per liter.