MANILA, Philippines — Motorists should brace for higher gasoline prices next week as the escalating conflict in the Middle East continues to threaten critical oil supply.
Gasoline prices are projected to rise by P2.90 to as high as P3.20 per liter. On the other hand, diesel prices could drop by P0.40 to P0.60 per liter next week.
The recent estimates are based on the four-day movements in the foreign exchange rate and the Mean of Platts Singapore, the regional benchmark for refined petroleum products in the Asia-Pacific.
Jetti Petroleum president Leo Bellas said oil prices remained supported by concerns over possible supply disruptions in the Middle East.
“Diesel and gasoline closely followed the movement of crude oil, which continues to be supported by concerns about energy supply disruptions in the Middle East as regional attacks continue and worries the US could strike Iran after next week’s US midterm elections,” he said.
He noted that hopes for a diplomatic breakthrough in the conflict helped limit a surge in prices.
“However, hopes for a breakthrough in the diplomatic efforts to end the eight-month-long conflict helped pare oil’s further rise,” Bellas added.
He said that improving fuel supply prospects helped unwind diesel and gasoline gains after China issued a fourth batch of fuel export quotas for gasoline, diesel and jet fuel.
He added that South Korea’s easing of diesel export restrictions helped offer additional relief for tight Asian and global markets.
Additional supply prospects were seen after Russia’s diesel and gasoline exports peaked amid the pause in Ukrainian refinery strikes.
“These factors have pressured diesel, reversing earlier gains,” Bellas added.
The final domestic pump price adjustments would still depend on the outcome of this week’s last trading day. The forecast does not yet account for week-on-week changes in freight costs.
The Department of Energy has mandated that all oil companies follow its prescribed maximum price increases, amid the ongoing national energy emergency.