Fuel prices may increase by as much as P6.50 per liter next week as global oil markets respond to renewed supply disruption concerns linked to the closure of the Strait of Hormuz.
Jetti Petroleum president Leo Bellas said Friday that diesel prices are projected to increase by P6 to P6.50 per liter, while gasoline prices may rise by P5.50 to P6 per liter based on oil price developments as of Thursday.
“World oil prices have rebounded significantly due to concerns of further disruption to oil supply as the Strait of Hormuz remains largely closed to vessel traffic, and growing security risks in the Bab el-Mandeb Strait expanded the conflict and raised the threat to global energy supplies and trade beyond the Persian Gulf,” Bellas said in a message to journalists.
The projected increase comes after domestic fuel prices already posted significant adjustments this week. Gasoline prices increased by P3.65 per liter, diesel by P10.68 per liter, and kerosene by P11.77 per liter.
Bellas said the renewed tensions in the Middle East have raised concerns over the movement of fuel supplies, particularly diesel, as the Gulf remains a major source of the commodity.
He said tanker flows were only beginning to recover before hostilities intensified again, while renewed military strikes and a reciprocal blockade of the Strait of Hormuz by the United States and Iran created additional pressure on global supply.
“Refinery disruptions and further constraints on Middle Eastern and Russian supply are keeping middle distillate supplies tight and prices elevated,” Bellas said.
He added that gasoline prices have also been affected by tight global inventories, strong demand, and continued uncertainty over the recovery of Middle Eastern exports.
The Strait of Hormuz is a major shipping route for global oil trade, with disruptions in the area raising concerns over fuel availability and international energy prices.
Photo courtesy of PNA
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