Motorists will face another round of oil price hikes next week, with increases of as much as P1.60 per liter, amid persistent geopolitical tensions involving the United States and Iran.
The projected adjustments mark the sixth straight weekly increase for diesel and kerosene and the fifth for gasoline since the start of the year. There has only been one price rollback for gasoline during the period.
Diesel prices have jumped by P7 pesos per liter, while kerosene has increased to P5 per liter. Gasoline has risen by P3.10 per liter.
Jetti Petroleum forecast gasoline prices to rise by P1.40 to P1.60 per liter and diesel by P0.50 to P0.70 per liter, based on the first four days’ Mean of Platts Singapore (MOPS) and foreign exchange averages compared with last week’s full-week average.
“Oil prices have remained elevated and volatile this week as the threat of US-Iran conflict remains. Iran-related Western sanctions and tariff threats on countries buying Iranian goods have added to the price volatility,” said Leo Bellas, president of Jetti Petroleum.
On February 10, oil firms raised diesel prices by P1 per liter, while gasoline and kerosene went up by P0.60 per liter.
Bellas said competition for sanctions-compliant supply has intensified as India shifts away from discounted Russian crude to align with a US trade deal, further pushing up global oil prices.
“Heightened geopolitical tensions continue to support diesel and middle distillate prices. Supply flow disruptions and constraints have also lifted prices as Europe moves away from diesel processed from Russian-origin feedstock to sanctions-compliant supplies from other sources,” he said.
Gasoline prices, he added, are being buoyed by strong regional buying and a seasonal demand uptick ahead of the Lunar New Year.
A stronger peso against the US dollar this week helped temper the spike, he noted.
The Department of Energy confirmed another round of price increases, including kerosene, which is expected to go up by around P0.25 per liter.
Rodela Romero, director of the DOE Oil Industry Management Bureau, said final adjustments will be determined after Friday’s MOPS trading and after factoring in operating costs and other premiums.
“The strongest factor helping oil prices to move in an upward direction is the geopolitical tensions, particularly in Iran. The risk of supply disruption through the Strait of Hormuz and the uncertainty around Iran nuclear talks added a risk premium,” Romero said.
She added that reports the US may intercept vessels carrying Iranian crude have heightened supply concerns.
