Diesel and gasoline prices are expected to rise significantly next week due to higher global oil prices, according to an oil industry source on Friday, Aug. 14.
Based on Mean of Platts Singapore (MOPS) prices and exchange rates recorded from Aug. 10 to 13, diesel prices could increase by P3.75 to P4.25 per liter, while gasoline prices may rise by P2.50 to P3.00 per liter next week.
The expected price hike comes as global oil prices rose amid fading hopes for a U.S.-Iran peace deal that could end the ongoing conflict and pave the way for the reopening of the Strait of Hormuz to traffic.
Markets have become increasingly cautious about the negotiations, with competing compensation claims stemming from the five-month conflict adding another hurdle to reaching an agreement.
Declining global oil inventories have also contributed to higher prices, as constrained supplies limit flows from the Middle East Gulf and reduce exports from the Black Sea.
Meanwhile, potential sanctions-related disruptions have further raised concerns about tighter conditions in the global crude oil market.
