Manila: Domestic fuel prices in the Philippines are anticipated to see a significant increase of up to PHP10.50 per liter as tensions in the Middle East continue to escalate.

According to Philippines News Agency, Jetti Petroleum president Leo Bellas communicated to journalists that diesel prices are expected to rise between PHP10 and PHP10.50 per liter, while gasoline prices may increase by PHP4.50 to PHP5 per liter. This projected hike is higher than the recent increase reported by the Department of Energy (DOE), which saw gasoline prices rise by PHP4.69 per liter and diesel by PHP5.18 per liter. Kerosene prices also saw a hike of PHP5.58 per liter.

Bellas attributed the surge in oil prices to recent attacks in the Strait of Hormuz and the Red Sea, which are crucial oil transit routes, causing heightened concerns about supply disruptions. The attacks on Saudi Arabia's East-West pipeline have exacerbated fears of a significant impact on global energy supplies due to the shutdown of this key oil route.

The ongoing conflict in the Middle East, a major supplier of diesel and crude oil, coupled with attacks on refineries in Russia, another significant diesel supplier, is pushing prices to unprecedented levels. Bellas noted that these developments have led to concerns about severe constraints on product flow and availability.

In the Asian market, gasoline prices continue to rise due to strong regional demand and worries that hostilities in the Red Sea could further limit supplies from the Middle East. The DOE has acknowledged the ongoing rise in oil prices and attributes it to the Middle East crisis, but they assure that domestic fuel supplies remain above regulatory requirements. Subsidies continue to be provided to eligible beneficiaries, including public utility vehicle drivers.