Fuel prices could climb past P100 again next week

National

THREE-DIGIT fuel prices could become the new norm at more pumps next week, with gasoline seen rising by more than P4 per liter and diesel and kerosene also expected to climb.

The projected increases could push premium gasoline, diesel and kerosene further above P100 per liter at some Metro Manila stations by Tuesday, Sept. 15, following another round of steep adjustments this week.

Department of Energy (DOE) Oil Industry Management Bureau Director Rino Abad said on Friday that trading so far pointed to higher prices for all three petroleum products. He said the expected increases for diesel and kerosene would likely be about half of the previous week’s adjustments, while gasoline could post a hike within a similar range as last week.

The outlook comes after pump prices were raised sharply on Tuesday. Gasoline increased by P4.69 per liter, while diesel and kerosene went up by P5.18 and P5.58 per liter, respectively.

Based on prevailing Metro Manila pump prices following the September 8 adjustment, another increase of around P4 could push the highest gasoline prices to roughly P106 per liter.

Premium diesel, which already sells for more than P100 per liter at some stations, could reach around P104 if prices rise by another P2. Kerosene could climb to roughly P103 to P138 per liter, depending on the station.

The projections remain preliminary. Oil companies typically announce their final price adjustments on Monday after accounting for the full week’s movements in international oil prices and the peso-dollar exchange rate.

Abad also pointed to developments around the Red Sea as another potential risk to global oil supplies, amid disruptions involving the Strait of Hormuz.

“Ito ho ’yung sinasabi namin na posible pang magdagdag doon sa nangyayari pa sa Strait of Hormuz,” Abad said in a Philstar report.

Iran-backed Houthi forces this week seized the strategic Yemeni port city of Mokha near the Bab el-Mandeb Strait, raising concerns over shipping through the waterway linking the Red Sea to the Gulf of Aden and, farther north, the Suez Canal.

The Bab el-Mandeb is a key passage for energy shipments and other trade between Asia, the Middle East and Europe. The latest developments have raised concerns that disruptions could extend to another major maritime chokepoint.

Reuters reported that Brent crude had climbed to nearly $110 a barrel after surging about 6% in the previous session amid concerns over supply routes through both the Strait of Hormuz and the Red Sea.(MyTVCebu)