Filipino motorists could be in for another painful week at the gas pump, with gasoline and diesel prices expected to climb significantly as international oil markets remain volatile.
An industry source estimates that prices could increase by P5.50 to P6.00 per liter for gasoline and P4.00 to P4.50 per liter for diesel beginning the week of September 14. The projection considers movements in the Mean of Platts Singapore (MOPS), the peso-dollar exchange rate, and other market factors.
Middle East Conflict Keeps Oil Markets on Edge
The expected hikes come as renewed attacks on shipping routes and energy facilities continue to threaten the global oil supply.
Oil prices moved higher following attacks on Saudi Arabia's East-West pipeline, leading to the temporary shutdown of the key oil transport route. The disruption adds another layer of uncertainty to an energy market already affected by the ongoing conflict involving the United States and Iran.
Fuel Costs Have Already Climbed by More Than P50
The latest projection follows another round of steep increases implemented this week. Gasoline went up by as much as P4.70 per liter, while diesel rose by up to P5.20 and kerosene by as much as P5.60 per liter.
DOE data show that the cumulative net increase in pump prices this year has already reached P59.32 per liter for gasoline, P60.46 for diesel, and P53.45 for kerosene.
Peso Weakness Could Add to the Pain
The weakening peso is also putting additional pressure on fuel costs, since the Philippines relies heavily on imported oil.
The peso ended Friday at P62.68 against the US dollar, its 24th record low this year. Market watchers have linked the currency's continued weakness to higher global oil prices and uncertainty surrounding the conflict in the Middle East.
If the latest projections hold, motorists and businesses may once again have to adjust their budgets as higher fuel costs could also feed into transportation, logistics, and the prices of everyday goods.
