Supply woes, geopolitical tensions trigger another fuel price hike

National

GEAR UP for another hit at the pumps, as fuel prices in the Philippines are set to climb once again next week, driven by global supply disruptions and mounting geopolitical tensions.

Based on the first four days of trading in the international oil market, fuel prices are expected to increase by P0.85 to P1.35 per liter for gasoline, P0.75 to P1.25 per liter for diesel, and P0.95 to P1.10 per liter for kerosene, according to the Department of Energy (DOE).

Rodela Romero, assistant director of the DOE’s Oil Industry Management Bureau, attributed the looming price hikes to US sanctions on Iran, which could reduce global oil supply by roughly one million barrels per day.

"The expected increases are influenced by geopolitical tensions and supply risks, including US sanctions on Iran, continued attacks on energy installations in Russia and Ukraine, and the US threat of tariffs on nations buying Venezuelan crude oil," Romero said in a Daily Tribune report.

Leo Bellas, president of Jetti Petroleum, noted that fuel prices have surged throughout the week due to mounting supply risks and trade war concerns. He projected that diesel prices could climb by P0.80 to P1 per liter, while gasoline might rise by P1 to P1.20 per liter.

"Fresh sanctions on Iran and tariff threats on Venezuelan oil buyers could tighten supply," Bellas was quoted in the same article.

He also warned that the OPEC+ production plan, which requires seven member nations to cut output to offset previous overproduction, may counteract the group’s planned supply hikes next month.

Despite growing fears of a potential global economic slowdown, signs of strong demand in the US, where crude and fuel inventories recently fell more than expected, have provided support for rising oil prices.

Meanwhile, local fuel retailers have already adjusted prices this week, increasing gasoline by P1.10 per liter and diesel and kerosene by P0.40 per liter. As of March 18, official government data showed a total net increase of P2.15 per liter for gasoline and P2.85 per liter for diesel since the start of the year, while kerosene recorded a net decrease of P0.70 per liter.

Final fuel price adjustments will be announced on Monday and will take effect the following day.(MyTVCebu Desk)