Fuel price hike looms as oil markets react to global risks

National

AFTER just days of higher pump prices, motorists could face another increase next week as global oil supply concerns drive fuel costs upward.

Industry projections point to price hikes of about P0.50 to P0.70 per liter for gasoline and P1.30 to P1.50 per liter for diesel. Kerosene prices are also expected to rise by roughly P0.45 per liter.

The anticipated adjustments mirror recent movements in global oil markets, which have been shaped by supply disruptions and geopolitical developments.

Department of Energy–Oil Industry Management Bureau assistant director Rodela Romero said crude prices climbed following weather-related disruptions that affected refinery operations in the United States.

“Oil rallied for three straight sessions (Jan. 27 to 29) as traders priced in weather-driven US supply disruption that shut in as much as two million barrels per day output,” Romero said in a Philstar report.

Beyond the US supply issues, Romero noted that oil prices have also been supported by the slow recovery of Kazakhstan’s Tengiz oil field after a fire or power-related problem, increased risk premiums linked to Iran, and the decision of OPEC+ to pause planned output hikes.

Geopolitical tensions in the Middle East have further added to market uncertainty. According to Jetti Petroleum president Leo Bellas, rising US-Iran tensions, including new sanctions and visible military deployments, have heightened concerns over Iranian supply continuity and broader regional stability, providing additional upward support to crude prices.

Oil companies are expected to announce the official fuel price adjustments on Monday, with the new prices taking effect on Tuesday.

Earlier this week, oil firms implemented price increases of P0.40 per liter for gasoline, P1.40 per liter for diesel, and P0.80 per liter for kerosene.(MyTVCebu)