Diesel to rise by P4/liter, rollback for gasoline on July 14

MANILA – Domestic fuel prices are projected to rise as much as PHP4 per liter next week due to supply constraints and the latest military actions between the U.S. and Iran.

Citing price movements in the first four trading days this week, Jetti Petroleum president Leo Bellas, in a message to journalists Friday, said diesel prices will likely go up between PHP2 to PHP4 per liter while gasoline may be rolled back or increase by PHP1 per liter.

He explained that even before the recent developments in the Middle East, prices of diesel and middle distillates “have strengthened on the back of firm demand while supply continues to tighten as physical availability remains constrained.”

READ MORE: Pump prices of gasoline, diesel to increase anew

He also noted that “the potential loss of Russian diesel exports is also adding another layer of support as Russia’s energy infrastructure continue to sustain damage from intensified Ukrainian drone attacks.”

Another factor is the weakening of gasoline prices in Asia, he said, since the “regional market remained balance amid ample supplies and steady regional demand.”

“Looking ahead, prices are likely to firm up as balances across global gasoline markets are tightening amid the peak Northern Hemisphere summer demand season and supply constraints due to refinery maintenances and run cuts,” he said.

Bellas attributed the jump in oil prices in the international market to “the July 7 Iranian strikes directly targeting vessels attempting to transit the Strait of Hormuz outside its officially-approved route, the ensuing retaliatory strikes by the US following the Iran attacks, and revocation by the US of sanctions relief for Iranian oil exports.”

He said “renewed fears of supply disruption after the US launched strikes on Iran on July 9, with Iran responding with attacks on US infrastructures in neighboring Gulf states” are fueling concerns.

“The military strikes in the Middle East continue to expose the ongoing risk to supply, and the latest escalation in the US-Iran war has dimmed the prospect of having a lasting peace deal,” he added.

READ MORE: Diesel prices likely to go up next week, gasoline prices to go down

Your subscription could not be saved. Please try again.

Your subscription has been successful.

Read Next

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of Cebudailynews. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.