P6 spike seen in diesel, gasoline prices

INQUIRER PHOTO / NIÑO JESUS ORBETA Local oil firms are expected to implement another hefty increase for petroleum products next week amid growing supply concerns. Jetti Petroleum president Leo Bellas said on Friday diesel may jump by P6 to P6.50 a liter. Article continues after this advertisement Gasoline may likewise go up by P5.50 to P6 per liter. “World oil prices have rebounded significantly due to concerns of further disruption to oil supply [in the Arabian Peninsula], 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. “As the Gulf is a major source of diesel and tanker flows were only beginning to recover before hostilities flared again, renewed military strikes and a reciprocal blockade … by the US and Iran have raised fresh supply concerns,” he added. ‘Fuel supply sufficient’ Bellas’ estimates were based on the first four days of trading at the Mean of Platts Singapore (MOPS) and foreign exchange movements. MOPS is the basis for the pricing of refined petroleum products in Southeast Asia. The projections could still change with one trading session left. Article continues after this advertisement This week, fuel retailers were allowed to implement a maximum P10.68-per-liter hike for diesel. Gasoline also rose by as much as P3.65 per liter, while kerosene had the highest increase at P11.77 per liter. Following expectations of significant adjustments in fuel prices due to renewed hostilities in the Middle East, the Department of Energy (DOE) is again imposing government-mandated price adjustments across petroleum products. Article continues after this advertisement “Let me assure the public on the point that matters most. Our fuel supply is sufficient. Inventories remain adequate. Filipinos can go about their normal routines and operations with confidence,” Energy Secretary Sharon Garin said. As of July 17, the country’s fuel supply is enough for 46 days, data from the DOE showed. Your subscription could not be saved. Please try again. Your subscription has been successful.