Domestic oil prices may increase by as much as PHP3 per liter next week following recent military attacks between the United States and Iran, according to Jetti Petroleum president Leo Bellas.
Price Range Estimates
Bellas, in a message to journalists on Friday, said diesel prices may rise by PHP1 to PHP3 per liter, while gasoline prices could be slashed or hiked by PHP1 per liter. These estimates are based on oil price movements as of Thursday.
Impact of US-Iran Attacks
Bellas noted that “last week’s attacks on commercial vessels and the military strikes by the U.S. and Iran over the weekend have exposed the fragile normalization of commercial traffic in the Strait of Hormuz.” He added, “While crude oil prices have softened because of easing supply concerns and optimism over the U.S.-Iran peace talks, diesel and middle distillate prices have strengthened due to signals of tight fundamentals.”
Gasoline Market Dynamics
“Asian gasoline prices are buoyed by firm demand and limited exports from China, although further upside is capped by signs of healthy supply in the region,” Bellas said.
DOE Fuel Price Adjustment Range
On Monday, the Department of Energy announced the range of fuel price adjustments for this week. Gasoline prices were allowed to be reduced by as much as PHP0.10 per liter but could also be hiked by up to PHP1.90 per liter. Diesel prices could be slashed by up to PHP1.16 per liter or increased by PHP0.84 per liter. Kerosene prices could decline by a maximum of PHP0.78 per liter or increase by up to PHP1.22 per liter.
