P4 to P5/liter price hike possible next week

MANILA, September 5 ------ Domestic fuel prices are projected to increase next week following the resumption of hostilities between the US and Iran over mining in the Strait of Hormuz.

Citing price developments in the international market, Jetti Petroleum president Leo Bellas said Friday that diesel prices may go up by PHP4.50 to PHP5 per liter, and gasoline by PHP4 to PHP4.50 per liter. “Oil prices rose as the resumption of hostilities between the US and Iran over mining in the Strait of Hormuz raised concerns about more disruptions to energy flows from the Middle East,” Bellas said in a message to the media.

He said tightening global diesel inventories and refinery disruptions around the world have further pushed fuel prices higher. This supply squeeze is compounded by diminished flows through the Strait of Hormuz alongside continued Ukrainian drone attacks on Russian energy infrastructure, Bellas said. “Gasoline fundamentals remain firm, supported by low inventories and resilient demand,” he added. “Uncertainty over supply security continue(s) to support Asian gasoline prices, with supply from China likely to be tempered by stockpiling ahead of the Golden Week holidays.”

Source: pna.gov.ph