DIESEL and gasoline prices are expected to go up again next week as global markets continue to react to developments in the Middle East, and a lack of supply, local oil industry sources said Friday.
Diesel prices will go up by around P1.00 to P1.30 per liter, while gasoline prices are expected to jump between P1.20 and P1.50 per liter.
These estimates are based on the four-day trading of Mean of Platts Singapore (MOPS), the pricing basis of refined goods in Southeast Asia.
This will be the second consecutive week where diesel and gasoline prices increased.
Sources noted, however, that crude prices have been trending lower by the end of the week due to reports saying that the ceasefire negotiations between the US, Israel and Iran are heading toward the final stages; and also because of the recent extension of a waiver allowing countries to temporarily procure Russian crude.
"Based on the first four trading days of MOPS, diesel prices were initially elevated due to high crude prices and unresolved supply disruptions, all due to the uncertainty in the Middle East. Meanwhile, gasoline prices were also higher, with supplies from Asia possibly moving to other regions amid reduced production in Europe, and demand from the US accelerating with the onset of the peak summer season," a source said.
"However, by the end of the week, crude and refined products prices have eased down recently due to positive developments in the peace talks, with signals that negotiations are in the final stages. Nevertheless, volatility can be expected as uncertainty and tensions in the Middle East continue to linger. Other factors in the recent decline in prices are the extension of sanctions waiver on Russian oil, and the limited movements through the Strait of Hormuz, which in turn sparked hopes of normalization in the route," the source added.
This week, diesel prices spiked by up to P2.82 per liter, while gasoline prices increased by up to P1.21 per liter.
