Global tensions, weak peso drive fuel prices higher

National

A RELIEF at the pump is not happening anytime soon.

Fuel costs are poised to climb again next week, as currency pressures and global shipping issues keep pushing prices up.

International market volatility and the weakening peso contributed to the expected increase.

In a report by Inquirer.net, Jetti Petroleum president Leo Bellas said diesel prices may rise by P0.70 to P0.90 per liter, while gasoline could go up by P0.30 to P0.50. These figures are aligned with estimates from the Department of Energy, which cited a “more or less 50-centavo” upward adjustment in pump prices.

Bellas pointed to the peso’s depreciation as a significant contributor to the looming hike.

“The depreciation of the local currency could be one of the main factors for the larger potential hike in domestic prices next week,” he said in the report.

Tensions in the Red Sea have also added pressure to global fuel costs, with attacks on cargo ships pushing freight and insurance premiums higher.

This week alone, local oil companies raised prices by P1.40 per liter for diesel, P0.70 for gasoline, and P0.80 for kerosene, signaling what may be a continuing trend in the weeks ahead.(MyTVCebu)