Manila: Oil prices are projected to increase as much as PHP0.70 per liter next week as supply issues linger, a fuel company executive said, citing developments as of Thursday. In a report Friday, Jetti Petroleum president Leo Bellas highlighted the potential rise in diesel prices, which are expected to increase between PHP0.50 to PHP0.70 per liter. Gasoline prices, however, present a mixed forecast, with a possible hike of up to PHP0.10 per liter, but also a potential decrease by the same margin.

According to Philippines News Agency, Bellas noted that while crude price benchmarks have slightly eased week-on-week due to weakened demand from significant refinery turnarounds and concerns over a potential supply glut, refined fuel product prices remain elevated due to ongoing supply concerns. The price of diesel at the Asian benchmark, Mean of Platts Singapore (MOPS), has risen, primarily due to tightening supply from reduced outflows in Northeast Asia amid refinery maintenance shutdowns.

Bellas further explained that inventories are expected to remain limited in the near term, as major regional refiners might reduce output if producers face challenges accessing cheaper Russian crude. Global diesel prices continue to be supported following Western sanctions on Russia, a significant exporter of the middle distillate.

Conversely, Bellas pointed out that gasoline prices have weakened, with Asian supply bolstered by higher output from China due to new export quotas. Despite this, any potential losses are mitigated by strong regional demand. Bellas emphasized that future crude feedstock supply uncertainties, following US sanctions on Russia's Rosneft and Lukoil, continue to support prices. Additionally, planned refinery turnarounds and unforeseen outages in the region contribute to maintaining a floor on gasoline prices.

Recently, oil firms increased gasoline prices by PHP1.70 per liter and diesel by PHP2.70 per liter last Tuesday, marking the fifth consecutive week of price hikes for gasoline.