GASOLINE and diesel prices are expected to increase again next week, as the global market reacted to the recent flare-up in the Israel-US and Iran conflict, local oil industry sources said on Friday.
They said diesel prices could rise by around P1 to P3 per liter, while gasoline prices could increase by up to P1 per liter.
These estimates are based on the 4-day trading of Mean of Platts, Singapore, the pricing basis for refined goods in Southeast Asia.
"Global oil prices remain volatile as last week’s attacks on commercial vessels and the military strikes by the US and Iran over the weekend have exposed the fragile normalization of commercial traffic in the Strait of Hormuz. While crude oil prices have initially softened because of easing supply concerns and optimism over the US-Iran peace talks, diesel and middle distillate prices have now gone up due to recent developments," a local oil industry source said.
"Meanwhile, Asian gasoline prices are high because of firm demand and limited exports from China, but further increases are capped as of now due to signs of healthy supply in the region," the source added.
This week, local oil companies increased diesel prices by P0.84 per liter, hiked gasoline prices by P1.65 per liter, and raised prices by P1.22 per liter.