THE per-liter price of diesel is expected to surge by as much P10.50 and gasoline by P4.50 next week over the continuing political volatility in the Middle East.
Local oil industry sources said on Friday diesel prices are projected to spike by P9.50 to P10.50, and gasoline is expected to jump by P3.50 to P4.50, based on the Mean of Platts Singapore, the pricing basis of refined petroleum in Southeast Asia.
“World oil prices are trending upwards once again after the Iranian attacks on commercial ships attempting to transit the Strait of Hormuz outside the Iranian-approved route and the retaliatory strikes by the US on Iranian military assets,” one source said.
Also driving up fuel oil prices is the decline in diesel exports from Russia, which have been significantly curtailed due to energy infrastructure damage caused by intensifying Ukrainian drone attacks, the source added.
“Concerns over the availability of crude feedstocks and refined products during the peak demand season due to uncertainty surrounding vessel traffic through the Strait of Hormuz and instability around the vital waterway, are also making gasoline prices stay elevated,” the source said.
Diesel prices rose by P4.60 per liter this week, and gasoline by P1 per liter.
