Manila: Prices of oil are expected to increase by as much as PHP1.20 per liter next week based on movements of the benchmark and the foreign exchange. In a commentary Friday, Jetti Petroleum president Leo Bellas said the price of diesel is projected to rise between PHP0.60 and PHP0.80 per liter and gasoline by PHP1 to PHP1.20 per liter.
According to Philippines News Agency, Bellas mentioned that the prices of crude oil and refined fuel products have strengthened this week due to concerns over potential disruptions in Russian supplies amidst the ongoing Russia-Ukraine conflict. He highlighted that the intensified attacks by Ukraine on Russia’s ports and refineries have already impacted Russian supplies. Moreover, rising concerns over a broader escalation of tensions in the Middle East are supporting the increase in prices.
Bellas further explained that the situation is compounded by higher diesel demand in Northern Hemisphere countries as the autumn season approaches. The increased demand coupled with supply
constraints resulting from damage to Russian refineries and export facilities has tightened the supply outlook.
Additionally, Bellas noted that while gasoline demand indicators show signs of weakening, operational issues in major refineries have affected gasoline trade flows. Upcoming refinery turnarounds are also anticipated to tighten supply. However, there are demand concerns due to signs of a slowing US economy, which are putting pressure on prices and offsetting supply worries. A larger-than-expected rise in US distillate stockpiles has raised concerns about demand in the world’s largest oil consumer.
Domestic oil prices have been on the rise for a month now, with this week’s price increases ranging between PHP0.10 and PHP0.50 per liter.
