After a brief period of price cuts, motorists may face a big-time fuel price increase next week, with diesel and gasoline expected to rise by more than P4 per liter.
The Department of Energy (DOE) Oil Management Bureau said there is a strong possibility of an oil price hike on Tuesday, September 8, due to movements in global oil prices, according to a report by Jecelle Ricafort on DZRH's Operation Tulong.
After four days of trading, industry estimates point to a potential increase of P4.50 to P5 per liter for diesel and P4 to P4.50 per liter for gasoline.
Kerosene prices may also increase by around P5 per liter next week, based on estimates from an energy industry source.
The expected increase follows a surge in global oil prices after the United States carried out a strike on an island in Iran near the Strait of Hormuz over the weekend.
The attacks were followed by retaliatory strikes by Iran and the United States against targets in the Middle East, as well as a fresh threat from US President Donald Trump against Iran.
The Strait of Hormuz is a crucial route for global energy shipments, with nearly one-fifth of the world's oil supply typically passing through the waterway.
The rise in global oil prices has also heightened concerns that inflation could remain elevated, potentially prompting central banks to keep interest rates high or raise them further.
Global diesel supplies have also been affected by disruptions in refinery operations in several parts of the world, particularly in Russia and the Middle East.
Continued Ukrainian drone attacks on Russian energy infrastructure have further intensified concerns over global fuel supplies.
The DOE is expected to announce the final adjustments on Monday, September 7, ahead of the implementation of new pump prices on Tuesday.
