Manila: Domestic oil prices may rise by as much as PHP3 per liter next week following the recent military attacks between the United States and Iran. Jetti Petroleum president Leo Bellas, in a message to journalists Friday, said diesel prices may rise by PHP1 to PHP3 per liter, while gasoline prices may be slashed or hiked by PHP1 per liter. This is based on the oil price movements as of Thursday, he said.

According to Philippines News Agency, Bellas noted that "last week's attacks on commercial vessels and the military strikes by the U.S. and Iran over the weekend have exposed the fragile normalization of commercial traffic in the Strait of Hormuz." While crude oil prices have softened due to easing supply concerns and optimism over the U.S.-Iran peace talks, diesel and middle distillate prices have strengthened due to signals of tight fundamentals.

Asian gasoline prices are buoyed by firm demand and limited exports from China, although further upside is capped by signs of healthy supply in the region, he added. On Monday, the Department of Energy announced the range of fuel price adjustments this week, with gasoline prices allowed to be reduced by as much as PHP0.10 per liter, but was also authorized to be hiked by up to PHP1.90 per liter. Diesel prices, in turn, were allowed to be slashed by as much as PHP1.16 per liter but increased by up to PHP0.84 per liter; and kerosene, a maximum decline of PHP0.78 per liter or an increase of as much as PHP1.22 per liter.