Manila: Fuel prices are expected to post smaller increases next week as tensions in the Middle East show signs of easing, an industry official said Friday. Jetti Petroleum President Leo Bellas, in an advisory, said diesel prices are projected to increase by PHP11 to PHP12/liter, while gasoline prices are forecast to rise by up to PHP3/liter.

According to Philippines News Agency, this follows a sharp spike this week, when fuel prices surged by nearly PHP20/liter as supply remained volatile amid ongoing developments in the Middle East. Bellas explained that the relatively lower increase in diesel and easing of gasoline prices, although still remaining at elevated levels, are driven by de-escalation signals in the Middle East conflict, resulting in a drop in crude oil price benchmarks.

Gasoline prices, which closely track crude and regional supply risks, have softened as fears of prolonged supply outages are somewhat reduced. Bellas noted that while gasoline has shown relative easing, diesel often moves differently and more sharply due to distillate supply tightness.

Despite the projected slowdown in price increases, fuel supply remains at risk. Government officials and power sector executives have continued to urge consumers to conserve energy to help extend existing supply. Malaca±ang has already declared a state of national energy emergency to strengthen measures aimed at securing domestic supply and providing assistance to sectors most affected by the situation.