Manila: Fuel prices in the Philippines are anticipated to rise by as much as PHP6.50 per liter next week due to concerns over supply disruptions following the partial closure of the Strait of Hormuz to vessel traffic.

According to Philippines News Agency, Jetti Petroleum president Leo Bellas highlighted price developments indicating that diesel prices could increase by PHP6 to PHP6.50 per liter, while gasoline could see a rise of PHP5.50 to PHP6 per liter. Bellas attributed the increase to significant rebounds in world oil prices, driven by fears of further disruptions in oil supply caused by the closure of the Strait of Hormuz and escalating security risks in the Bab el-Mandeb Strait. These developments have expanded the conflict, raising threats to global energy supplies and trade beyond the Persian Gulf.

This week, domestic fuel prices already saw a steep rise, with gasoline prices increasing by PHP3.65 per liter, diesel by PHP10.68 per liter, and kerosene by PHP11.77 per liter. Bellas explained that the Gulf region is a major source of diesel, and tanker flows were just beginning to recover when hostilities resumed. The renewed military strikes and a reciprocal blockade of the Strait of Hormuz by the US and Iran have further exacerbated supply concerns.

He further noted that refinery disruptions and constraints on Middle Eastern and Russian supply are keeping middle distillate supplies tight and prices elevated. Tight global gasoline balances, strong demand, and low inventories, compounded by the Middle East hostilities, have continued to strengthen prices. Despite easing Chinese export restrictions and an increase in prompt supply from China, the renewed risk of supply disruptions and concerns over the delayed recovery of Middle Eastern gasoline exports have sustained elevated gasoline prices.