Manila: Oil prices will likely increase by as much as PHP1.30 per liter next week as geopolitical issues linger. Citing price movements as of Thursday, Jetti Petroleum president Leo Bellas, in a report Friday, said gasoline prices may jump between PHP1.10-1.30 per liter and diesel between PHP0.10-PHP0.30 per liter.

According to Philippines News Agency, Bellas stated that geopolitical risks and tensions have kept the level of premium and freight elevated, causing the price of diesel to remain elevated despite a drop in the week-on-week Mean of Platts Singapore (MOPS) diesel price averages. He explained that the middle distillate market softened as prospects for a Russia-Ukraine peace deal eased supply concerns, and expectations of rising supplies from possible higher exports from China also weighed on the supply situation.

Meanwhile, Bellas noted that gasoline prices in Asia remain supported on tight supply and robust regional demand. Gasoline exports from regional refiners have remained low, dragged down by lower volumes out of China and South Korea.

This week, gasoline prices increased by PHP0.20 per liter, but diesel prices were rolled back by PHP2.90 per liter.