(UPDATE) GASOLINE and diesel prices are likely to spike next week due to the escalation of geopolitical tensions, local oil industry sources announced on Friday.
They said gasoline prices are expected to increase from P1 to P1.20 per liter, and diesel prices from P1.80 to P2 per liter.
These estimates are based on the four-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia.
“The prices of crude oil and refined fuel products have increased significantly this week due to the volatile and unpredictable environment arising from the simultaneous geopolitical tensions in Venezuela, Iran, and the Black Sea, despite the potential supply glut looming over the market,” Jetti Petroleum president Leo Bellas said.
“Specifically, the protests in Iran and the threat of US intervention in support of demonstrators have raised concerns that the ensuing conflict could spread and threaten flows through the Strait of Hormuz. Furthermore, the drone attacks on two Western-operated oil tankers in the Black Sea have added to the tensions in the Middle East and fueled worries of more supplies being affected,” he added.
However, he said that recent comments by US President Trump on the easing of the crackdown on protests in Iran have allayed fears of potential oil supply disruptions and could cause prices to stabilize in the coming weeks.
“In addition, expectations of stability in supply from Venezuela and the larger-than-expected increase in US crude oil and gasoline inventories could affect the prices in the coming weeks as well,” Bellas added.
This week, local oil companies raised gasoline prices by P0.30 per liter, and diesel prices by P0.20 per liter.
