Local motorists should brace for a hefty increase in fuel prices this week, with diesel prices projected to surge by as much as P10.50 per liter and gasoline by up to P4 per liter. Jetti Petroleum President Leo Bellas confirmed that these steep upward adjustments reflect a full five-day trading period in the global market, alongside foreign exchange averages, rising cargo premiums, and local industry recovery efforts. While gasoline is expected to climb between P3.50 and P4 per liter, diesel will see a minimum hike of P10 per liter. No price outlook was provided for kerosene.
The looming price hikes are driven by severe geopolitical tensions in the Middle East, specifically the breakdown of the US-Iran truce and recent tanker attacks in the Strait of Hormuz. These events have sparked fears of supply disruptions at a time when global stock balances are already tight and demand remains firm. Furthermore, threats by Iran to direct Houthi allies to close the Red Sea export route if its infrastructure is attacked have caused global diesel and middle distillate prices to rally. This week’s major increases follow a mixed round of adjustments last week, where gasoline prices fluctuated by up to P1 and diesel rose by as much as P4.62 per liter.
