Manila: Geopolitical concerns overseas are expected to push global oil prices up further next week, which, in turn, is projected to increase domestic fuel prices by up to PHP2 per liter.

According to Philippines News Agency, Jetti Petroleum president Leo Bellas cited developments in the Asian fuel price benchmark and foreign exchange movements as of Thursday. He stated that diesel prices may rise by PHP1.80 to PHP2 per liter and gasoline by PHP1 to PHP1.20 per liter.

Bellas explained that the prices of crude oil and refined fuel products have increased significantly due to the volatile and unpredictable environment stemming from simultaneous geopolitical tensions in Venezuela, Iran, and the Black Sea, despite the potential supply glut looming over the market.

He further noted that protests in Iran and the threat of US intervention in support of demonstrators have raised concerns that the ensuing conflict could spread and threaten flows through the Strait of Hormuz. Additionally, drone attacks on two Western-operated oil tankers in the Black Sea have contributed to the tensions in the Middle East, fueling worries of more supplies being affected.

However, Bellas mentioned that recent comments by US President Trump regarding the easing of the crackdown on protesters in Iran have helped allay fears of potential oil supply disruptions. Expectations of stability in supply from Venezuela and a larger-than-expected increase in US crude oil and gasoline inventories have also recently influenced prices.

If the projected uptick in fuel prices next week materializes, it will be the fourth consecutive hike in diesel prices and the second for gasoline. Kerosene prices have also been on the rise for the third consecutive week.