MANILA – Domestic fuel prices are anticipated to increase by as much as PHP 1.20 per liter next week, driven by fluctuations in global benchmark prices and foreign exchange rates.
In a statement released on Friday, Jetti Petroleum President Leo Bellas projected that diesel prices may rise by PHP 0.60 to PHP 0.80 per liter, while gasoline prices could see an increase ranging from PHP 1.00 to PHP 1.20 per liter.
“Crude oil and refined product prices have strengthened this week amid concerns over potential disruptions in Russian supply, stemming from escalating hostilities in the Russia-Ukraine conflict,” Bellas stated.
He further explained that intensified Ukrainian attacks on Russian ports and refineries have already begun to impact Russian oil output. Moreover, growing apprehensions about a broader escalation of tensions in the Middle East are contributing to the upward pressure on prices.
Bellas added that seasonal factors are also influencing market dynamics. “The approaching autumn season in Northern Hemisphere countries is driving up diesel demand, further tightening the supply outlook due to ongoing constraints resulting from damaged Russian refineries and export infrastructure,” he said.
Although indicators suggest a weakening in gasoline demand, Bellas pointed out that operational disruptions in major refineries and planned maintenance shutdowns (refinery turnarounds) are expected to restrict supply, thereby affecting trade flows.
Nevertheless, he acknowledged that concerns over weakening demand—particularly due to signs of a slowing U.S. economy—are tempering the impact of supply-side pressures. “A larger-than-expected increase in U.S. distillate inventories has raised questions about demand strength in the world’s largest oil consumer,” he noted.
Local fuel prices have been on an upward trend for the past month, with recent increases ranging between PHP 0.10 and PHP 0.50 per liter.| – BNN Integrated News
