MOTORISTS ADVISED: Brace for huge price hike next week

National

AFTER a brief relief last week, motorists should brace for a steep fuel price next week.

Local pump prices are projected to rise by as much as P5 per liter next week as oil markets respond to renewed supply concerns

Industry estimates based on four-day movements in the Mean of Platts Singapore (MOPS) and foreign exchange rates indicate that diesel prices could rise by P4.50 to P5 per liter, while gasoline prices may increase by P4 to P4.50 per liter.

The potential increase follows renewed tensions between the United States and Iran, which have placed fresh pressure on oil markets and raised concerns about disruptions to energy shipments through the Strait of Hormuz, a key route for global oil and gas trade.

Jetti Petroleum president Leo Bellas said the US strike on Larak, Iran’s missile response against US interests in the Middle East and renewed threats by US President Trump against Kharg Island have increased the risk of further escalation in the region after more than a month of relative calm.

“The US strike on Larak, Iran’s missile response against US interests in the Middle East and US President Trump’s renewed threats against Kharg Island have created renewed risk of escalation in the region after more than a month of relative calm,” Bellas said in a Philstar article.

The Philippines has historically sourced the majority of its crude oil supplies from the Middle East, making developments that could affect regional energy flows a key factor in the local fuel market.

Diesel prices are also being supported by disruptions at refineries worldwide, which have tightened inventories.

Meanwhile, weaker flows through the Strait of Hormuz have added further upward pressure to the market.

Gasoline prices have likewise remained firm, with low inventories and resilient demand supporting Asian markets. Uncertainty over the security of oil supplies has added to the upward pressure on gasoline prices, according to Bellas.

The projected adjustments are not yet final. Fuel companies are expected to announce their respective price changes on Monday, with the final figures still dependent on the outcome of the last trading day.

The possible increase comes just days after motorists received some relief at the pump. Last Tuesday, gasoline prices were reduced by around P0.30 per liter, while diesel and kerosene prices fell by nearly P4 per liter.(MyTVCebu)