Global tensions drive fuel costs higher

Motorists face higher fuel costs this week as pump prices rise for the third consecutive time starting tomorrow morning.

In separate advisories on Monday, oil companies confirmed that diesel prices will increase by P1.40 per liter, gasoline by P1, and kerosene by P0.70. 

The adjustments followed last week’s movement when gasoline and kerosene rose by P0.70 per liter, while diesel went up by P1.00 amid supply jitters and geopolitical tensions keeping global oil markets volatile.

Department of Energy Oil Industry Management Bureau Assistant Director Rodela Romero said the latest increase was driven by a mix of supply and geopolitical concerns. 

She pointed to “a $1 uptick in oil prices after new US sanctions on Iran’s oil revenues, the suspension of exports by Saudi Aramco and Iraq’s SOMO to an Indian refinery under European Union sanctions, and escalating airstrikes in Russia and Ukraine.”

Jetti Petroleum, Inc. President Leo Bellas also noted that supply risks continue to rattle the market. 

“Oil prices have increased on worries of supply disruptions after Russian oil flows dropped significantly as the country’s oil processing facilities suffered serious damage from Ukrainian attacks,” he said.

“Concerns over possible tighter supply from fresh US sanctions targeting Iran and initial expectations that OPEC+ will not change production output have also supported prices,” Bellas added. 

He further explained that speculation of a potential output hike in October has pressured prices due to oversupply concerns, while doubts over US demand growth and the vulnerability of refined fuel supply to trade disruptions could continue to weigh on the market.