Consumers are likely to face higher fuel prices in the week ahead, as early indicators show a potential increase in both diesel and gasoline costs.

Citing initial data from the first three training days of the Mean of Platts Singapore (MoPS), Jetti Petroleum Inc. said on Thursday that prices could rise by between P1.85 to P2.05 per liter for diesel and around P1.30 to P1.50 per liter for gasoline.

The company said the main factors driving these increases include a decision by OPEC+ to delay plans to ramp up oil production, heightened geopolitical tensions surrounding the Middle East, and a tight regional supply of refined products due to reduced exports from major producers like China and India.

Producers refuse output hike

OPEC+ nations, including Saudi Arabia and Russia, recently decided to hold off on plans to increase oil output, maintaining a tight global supply.

The decision has reinforced the upward pressure on oil prices, which in turn affects the cost of refined products like gasoline and diesel.

Adding to the uncertainty, reports suggest Iran could soon retaliate against Israel, escalating geopolitical risks in an already volatile region. Any escalation could further disrupt global oil markets, sending prices even higher as traders react to the potential for supply disruptions.

Meanwhile, a sharp decline in fuel exports from China and India has created a regional supply squeeze. Both countries have reduced their outflows of gasoline and diesel, further tightening global fuel availability and pushing prices up in the process.