Motorists in the Philippines should prepare for higher diesel costs next week as pump prices are projected to increase by P2 to P4 per liter starting July 14. The expected adjustment stems from recent global oil market movements and escalating tensions in the Middle East.
Industry estimates based on the first four trading days of the Mean of Platts Singapore and foreign exchange rates from July 6 to July 9 indicate the diesel hike. Gasoline prices are forecast to stay mostly stable, with possible changes of up to P1 per liter.
The price outlook reflects stronger demand for middle distillates and supply concerns tied to Middle East developments. Iranian strikes on vessels near the Strait of Hormuz on July 7 were followed by US retaliatory actions and the revocation of sanctions relief for Iranian oil exports.
Jetti Petroleum president Leo Bellas noted that military strikes continue to expose supply risks and have reduced prospects for a lasting peace deal. He added that demand in the Philippines has shown some recovery since April but remains below pre-conflict levels.
