Fuel prices to climb after mixed run

Fuel prices are expected to increase next week, with gasoline and diesel likely to rise by as much as 60 centavos per liter, reversing the mixed movement recorded this week.

Department of Energy–Oil Industry Management Bureau Assistant Director Rodela Romero said in a text message Friday that four-day trading data from the Mean of Platts Singapore (MOPS), the benchmark for the deregulated local oil industry, indicated higher fuel prices next week.

She estimated that gasoline could go up by 50 centavos per liter, diesel by 40 centavos and kerosene by 10 centavos.

“These estimated adjustments are attributed to the decline in US oil stockpiles for the week ending 15 August, pointing to stronger refinery demand, as well as the continuing Iran-Israel conflict,” Romero said.

She noted that the final adjustments will be determined after today’s trading.

Separately, Jetti Petroleum Inc. president Leo Bellas also projected higher pump prices, estimating an increase of around 20 to 40 centavos per liter for diesel and 40 to 60 centavos per liter for gasoline.

“MOPS has been tracking the movement of crude oil prices, which were relatively lower at the start of the week on the prospect that a peace deal in the war in Ukraine would ease sanctions on Russia and bring Russian oil back into global markets,” Bellas said.

“However, the uncertainty over the Ukraine peace talks has lifted oil prices due to growing concerns that tighter Western sanctions on Russia and additional US sanctions and tariffs on Russian oil buyers will disrupt supply flows.”

Bellas also noted that freight and premium levels remain elevated due to lingering geopolitical risks, while demand optimism has strengthened following a sharp drop in US crude and gasoline inventories amid strong consumption during the summer travel season.

This week, oil firms raised gasoline prices by P0.60 per liter while cutting diesel by P0.80 and kerosene by P0.90 per liter.