Oil price hike of close to P5 a liter set next week

A big-time oil price hike of close to P5 a liter is seen next week, REUTERS/Bing Guan/File Photo

MANILA, Philippines – A big-time oil price hike of almost P5 a liter awaits motorists next week due to global jitters over a supply disruption resulting from a possible escalation in the Israel-Iran conflict.

The Department of Energy and Jetti Petroleum estimated that gasoline prices would climb by P2.50 to P3.20 per liter while diesel prices are seen going up by a higher P4.30 to P4.80 per liter based on the four-day trading on the global oil market.

Meanwhile, kerosene is poised to increase by P4.25 to P4.40 per liter.

READ: Close to P2/liter hike in oil prices set for June 17

Last Tuesday, gasoline and diesel prices went up by P1.80 a liter while kerosene went up by P1.50 a liter.

“Major oil price shock is looming as the Israel – Iran conflict threatens critical global shipping passage,” Rodela Romero, assistant director of the Department of Energy’s Oil Industry Management Bureau, said in a Viber message.

Jetti president Leo Bellas said prices of petroleum products “have jumped considerably” this week because of increasing concerns about supply disruption resulting from the ongoing conflict between Israel and Iran.

“Rising fears that the war could disrupt trade flows in the Strait of Hormuz, and concerns that a direct US involvement would widen the conflict and trigger direct attacks on energy infrastructures, have caused the further spike in prices,” added Bellas.