Geopolitical concerns overseas are expected to push global oil prices up further next week, which, in turn, is projected to increase domestic fuel prices by up to P2 per liter.
Citing developments in the Asian fuel price benchmark and foreign exchange developments as of January 15, Jetti Petroleum president Leo Bellas said Friday diesel prices may rise by P1.80 to P2 per liter and gasoline, by P1 to P1.20 per liter.
He explained that “prices of crude oil and refined fuel products have increased significantly this week due to the volatile and unpredictable environment arising from the simultaneous geopolitical tensions in Venezuela, Iran, and the Black Sea, despite the potential supply glut looming over the market.”
“The protests in Iran and the threat of US intervention in support of demonstrators have raised concerns that the ensuing conflict could spread and threaten flows through the Strait of Hormuz,” he said.
He also noted that “drone attacks on two Western-operated oil tankers in the Black Sea have added to the tensions in the Middle East and fueled worries of more supplies being affected.”
“However, recent comments by US President Trump that the crackdown on protesters in Iran is easing have allayed fears of potential oil supply disruptions. Expectations of stability in supply from Venezuela and the larger-than-expected increase in US crude oil and gasoline inventories have also weighed on prices recently,” he added.
If the projected uptick in fuel prices next week materializes, it will be the fourth consecutive hike in diesel prices and the second for gasoline.
Kerosene prices have also been on the rise for the third consecutive week. (PNA)
