CONSUMERS can expect to see an increase in pump prices of petroleum products next week, according to the Department of Energy (DOE). The projected price hikes are being attributed to escalating tensions between the United States and Iran, which are impacting global crude oil markets.
Based on the four-day Mean of Platts Singapore (MOPS) trading, the estimated adjustments in fuel prices per liter for next week are: Gasoline (more or less an increase of P1.10), Diesel (more or less an increase of P0.50), and Kerosene (more or less an increase of P0.90).
DOE-Oil Industry Management Bureau (OIMB) assistant director Rodela Romero explained that the situation between the US and Iran is a key factor in the projected increases. “Crude lacks direction as the market looks to US-Iran talks held yesterday, February 26 in Geneva. This was the 3rd round of talks made by the two countries,” she said.
Romero further noted that despite ongoing talks, the US continues to impose sanctions on tankers transporting Iranian crude and maintains a significant military presence in the Middle East. “These contributed to the upward direction in the prices of petroleum products,” she added. The final price adjustments will be determined after Friday’s MOPS trading and will incorporate oil companies’ operating costs and other premiums. Oil companies typically announce official price adjustments every Monday, with implementation on the following day.
