Geopolitical tensions abroad are expected to drive global oil prices higher next week, pushing domestic fuel prices up by as much as P2 per liter.
Based on movements in the Asian fuel price benchmark and foreign exchange as of Thursday, Jetti Petroleum president Leo Bellas said Friday that diesel prices could increase by P1.80 to P2 per liter, while gasoline may rise by P1 to P1.20 per liter.
He said that “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.”
“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,” he said.
He added that “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.”
“However, recent comments by US President Trump that the crackdown on protesters in Iran is easing have allayed fears of potential oil supply disruptions. Expectations of stability in supply from Venezuela and the larger-than-expected increase in US crude oil and gasoline inventories have also weighed on prices recently,” he said.
If implemented, the expected price increases next week would mark the fourth straight hike for diesel and the second for gasoline.
Kerosene prices have also increased for a third consecutive week.
PNA PHOTO