PH braces for big-time oil price hike

A big-time fuel price increase, estimated at nearly P5 per liter, is set to rock motorists next week, driven by external shocks from escalating Middle East tensions.

- GABRIELL CHRISTEL GALANG and MARTIN SADONGDONG

Based on the four-day Mean of Platts Singapore (MOPS), gasoline could see an upward adjustment of P2.50 to P3.20 per liter, with diesel potentially climbing between P4.30 and P4.80 per liter.

Kerosene is also anticipated to go up around P4.25 to P4.40 per liter.

These adjustments are likely to be caused by the ongoing geopolitical tensions in the Middle East, particularly between Iran and Israel.

The Department of Energy's (DOE) Oil Industry Management Bureau (OIMB) said that this major price shock directly correlates to shipping disruptions.

"Major oil price shock looming as [the] Israel-Iran conflict threatens critical global shipping passage," said OIMB Director Rodela Romero.

Jetti Petroleum President Leo Bellas elaborated the conflict could affect supply transportation in the Strait of Hormuz, where a significant portion of the world's oil shipments pass through, potentially leading to further disruptions in global fuel supply and price volatility.