Fuel prices up next week on supply risks

Consumers should brace for another round of fuel price increases next week, driven by fresh geopolitical risks and global supply disruptions.

Oil Industry Management Bureau Director Rodela Romero said over the weekend that price adjustments based on the first four trading days in the Mean of Platts Singapore indicate an increase of around P0.85 to P1.35 per liter for gasoline, P0.75 to P1.25 per liter for diesel, and P0.95 to P1.10 per liter for kerosene.

"The expected increases are influenced by geopolitical tensions and supply risks, including US sanctions on Iran, continued attacks on energy installations in Russia and Ukraine, and the US threat of tariffs on nations buying Venezuelan crude oil," Romero said in a text message.

Jetti Petroleum President Leo Bellas also noted that fuel prices have surged throughout the week due to these supply risks and trade war concerns.

Bellas estimated that diesel prices could rise by P0.80 to P1 per liter, while gasoline may increase by P1 to P1.20 per liter.

"Fresh sanctions on Iran and tariff threats on Venezuelan oil buyers could tighten supply," Bellas said. 

"Meanwhile, the latest OPEC+ output plan, which requires seven member nations to cut production to offset past overproduction, could overshadow the group’s planned output hikes next month."  

Despite concerns over a global economic slowdown, Bellas noted that signs of strong demand in the US where crude and fuel inventories fell more than expected, have provided support for oil prices.  

This week, fuel retailers implemented a P1.10 per liter increase in gasoline prices and a P0.40 per liter hike for both diesel and kerosene.

As of 18 March, official government data showed a total net increase of P2.15 per liter for gasoline and P2.85 per liter for diesel, while kerosene recorded a total net decrease of P0.70 per liter.