By El Amigo
MANILA – Motorists may face another round of higher fuel prices next week, with diesel expected to increase by as much as PHP4.25 per liter and gasoline by up to PHP3 per liter, following a two-week period of declines.
In a report released Friday, Jetti Energy said its estimates were based on international oil price movements recorded through Thursday. Diesel prices are projected to climb by PHP3.75 to PHP4.25 per liter, while gasoline may rise by PHP2.50 to PHP3 per liter.
Jetti attributed the anticipated increases to renewed concerns in the global oil market after hopes for a peace agreement between the United States and Iran weakened. Optimism over a possible reopening of shipping routes through the Strait of Hormuz has also diminished as negotiations face additional complications.
The report said tighter global supplies are another factor supporting higher prices. Declining inventories, disruptions in Middle East Gulf supply routes and reduced Black Sea exports have added pressure to an already-constrained market. Possible sanctions-related disruptions could further limit crude oil availability.
Diesel prices have also been supported by supply concerns in the Middle East and restrictions affecting Russian exports. Meanwhile, gasoline prices are receiving support from stronger regional demand, although uncertainty over China’s future export volumes remains.
Jetti noted, however, that signs of softer global demand and rising US crude inventories could limit further increases in international oil prices.
