Manila: Tighter supply conditions that persist partly due to US sanctions on some Russian oil producers are projected to increase domestic oil prices by as much as PHP1.50 per liter next week.

According to Philippines News Agency, Jetti Petroleum president Leo Bellas cited price movements in the Asian benchmark, Mean of Platts Singapore (MOPS), and foreign exchange developments as of Thursday to forecast diesel prices to increase by PHP1 to PHP1.20 per liter and gasoline by PHP1.30 to PHP1.50 per liter. Bellas stated that diesel and middle distillate prices remain supported on tighter fundamentals as supply is capped due to refinery turnarounds, with concerns that Western sanctions on Russian oil could disrupt trade flows.

Gasoline prices are also expected to remain supported amid expectations of tighter supply, as firm regional demand continues to draw down inventories. Exports from major regional producers have been declining due to refinery outages and planned turnarounds. Bellas noted that any further upside to prices is expected to be limited as supply tightness is seen to gradually ease with refineries returning from seasonal turnarounds.

The projected upward adjustment next week marks the seventh increase for gasoline and the fourth for diesel, following a PHP0.50 per liter hike for gasoline and PHP1 per liter for diesel this week. Recent oil price hikes were not implemented in select areas severely impacted by recent typhoons.

Additionally, the prices of kerosene, along with other basic goods, have been maintained since November 7 after Malaca±ang declared a state of national calamity due to the impact of recent disasters.