Manila: Geopolitical developments overseas are projected to result in up to PHP0.50 per liter increase in domestic fuel prices next week. Citing price developments as of Dec. 25, Jetti Petroleum president Leo Bellas, in a report, said diesel prices are expected to increase between PHP0.30 to PHP0.50 per liter, and gasoline by up to PHP0.10 per liter.

According to Philippines News Agency, oil prices have been influenced by geopolitical developments, including tougher U.S. sanctions enforcement on Venezuela and intensified attacks by Ukraine on Russian oil infrastructures, raising the risk of supply disruptions. Additional support for prices comes from the possibility of increased supply risk due to potential new sanctions on Russia if Moscow does not agree to the Ukraine peace deal.

The Trump administration has increased its sanctions on Venezuela, alleging a lack of support for U.S. initiatives against illegal drugs and anti-terrorism campaigns. Furthermore, significant fuel infrastructure in the Russian port city of Temryuk was damaged following several drone attacks on Christmas Day, an event reported by officials from both Russia and Ukraine. These developments affect oil supply, which was previously projected to experience oversupply in the first quarter of 2026.

The anticipated oil price hike next week contrasts with the PHP0.80 per liter reduction in domestic fuel prices observed this week.