Fuel prices saw an uptick Monday following a temporary rollback last week, primarily driven by growing concern over the availability of crude oil from Russia and Iran. These concerns are rooted in ongoing U.S. sanctions and persistent geopolitical tensions in the Middle East.
Major oil players like Caltex, Shell, and Seaoil have raised the per-liter price of gasoline and diesel by P0.80, while kerosene price went up by P0.10. Smaller players, including Jetti, Clean Fuel, and PTT, implemented similar hikes of P0.80 per liter for both gasoline and diesel.
As of 11 February, the Department of Energy reported Manila’s average fuel price: gasoline (RON91) at P60.35, diesel at P56.45, and kerosene at P73.87 per liter. For the year, cumulative price increases have reached P3.25 per liter for gasoline, P3.55 for diesel, and P2.60 for kerosene.
Leo Bellas, president of Jetti Petroleum Inc., highlighted that regional supply constraints, exacerbated by reduced exports from key suppliers and the upcoming refinery maintenance season, are contributing factors to the price hikes. However, Bellas noted that the potential for a peace deal between Russia and Ukraine has tempered the rise in oil prices.
“Price increases could have been higher, but expectations that a potential peace deal between Russia and Ukraine could ease supply disruptions have capped further upward pressure,” Bellas explained. He also pointed to a rise in U.S. crude oil inventories as a factor that may offset price gains.
The combination of these geopolitical and market forces underscores the complex landscape of global oil pricing, with both supply constraints and diplomatic developments weighing heavily on the commercial dynamics of the energy market.
