Diesel seen topping P100 as another major fuel price hike looms

National

ANOTHER wave of double-digit fuel price hikes is looming in the Philippines, with diesel prices projected to surge past P100 per liter as global oil supply disruptions intensify.

Industry estimates indicate diesel prices may increase by P19.30 to P22.30 per liter, while gasoline could rise by P14 to P17 per liter next week, according to a Philstar report.

The projections are based on four days of trading on the Mean of Platts Singapore, a key benchmark used in pricing refined petroleum products in the region.

The expected increase comes as the ongoing conflict in the Middle East disrupts maritime traffic through the Strait of Hormuz, a critical global shipping lane for crude oil. The disruption has cut off shipments from one of the world’s largest oil-producing regions and has severely disrupted the supply chain.

The situation has also triggered refinery shutdowns, output cuts and force majeure declarations across parts of Asia, which rely heavily on oil supply from the Middle East.

Before tensions escalated, the strait handled around 20 percent of global oil and gas shipments.

Earlier this week, the country recorded the biggest fuel price increase so far this year. Gasoline prices rose by P7 to P13 per liter, diesel increased by P17.50 to P24.25, while kerosene jumped by P32 to P38.50.

Monitoring by the Department of Energy across six major oil firms showed regular diesel prices ranging from P78 to P84.75 per liter, with premium diesel reaching P87.44, while gasoline sells between P59.10 and P73.40 per liter depending on the octane rating.

Energy Secretary Sharon Garin said the outlook for fuel prices remains uncertain as tensions persist in the Middle East.

“This war is very erratic. We don’t know what’s going to happen. Nobody knows,” Garin said in an interview on The Big Story on One News per a report by Philstar.

Final price adjustments will depend on the last trading day, with oil companies expected to announce new pump prices on Monday for implementation the following day.(MyTVCebu)