Manila: An oil firm official on Friday highlighted the likelihood of a temporary halt in gasoline price hikes next week, based on recent price movements observed as of Thursday.

According to Philippines News Agency, Leo Bellas, president of Jetti Petroleum, stated that gasoline prices might decrease by PHP0.10 per liter, although there is also a possibility they could increase by the same margin. Meanwhile, diesel prices are predicted to see a rise ranging from PHP0.30 to PHP0.50 per liter.

Bellas elaborated that the "Singapore diesel price continued to mirror the strength in the European market, which drives global diesel demand trade," referencing the Means of Platts Singapore (MOPS), the benchmark for the Asia Pacific. He further explained that expectations of supply tightening due to upcoming refinery turnarounds are bolstering diesel fundamentals.

He also pointed out that gasoline demand is expected to decline as the summer driving season ends, though planned maintenance at major refineries could tighten supply. Despite a slight reduction in the average price of crude oil this week compared to last week, prices remain on an upward trend due to concerns over potential new sanctions on Russia and the expansion of secondary tariffs on its major buyers, which could disrupt Russian crude exports and tighten global supply.

Geopolitical tensions are also impacting prices, Bellas noted, citing incidents such as Israel's attack in Doha, Qatar, and Poland's interception of suspected Russian drones over its airspace. These factors are partially countered by the smaller-than-expected increase in oil output from OPEC+.

Bellas concluded by mentioning that worries over oversupply and a potential slowdown in demand are exerting pressure on prices, which may offset the perceived supply shortage due to rising tensions in the Middle East and Ukraine. This week marked the fourth consecutive increase in domestic oil prices, with rises between PHP1 and PHP1.40 per liter.