Philippines to raise fuel prices: Petrol rates spiking in 3rd week of August

Manila, Philippines: Motorists in the country may soon have to deal with another round of fuel price hikes as global oil prices continue to surge due to ongoing tensions between Iran and the United States. Early estimates indicate that the increases are already underway, with petroleum products experiencing significant jumps within the first two days of the trading week.

However, the final adjustments will depend on how global oil prices and the peso-dollar exchange rate evolve over the course of the trading week, according to ABS-CBN News.

Leo Bellas, President of Jetti Petroleum, attributes the recent price surge to declining optimism surrounding the reopening of the Strait of Hormuz and the possibility of a comprehensive peace agreement in the Middle East. The uncertainty over the strait's reopening has driven oil prices higher, particularly as Iran has indicated that the waterway will remain closed unless the United States agrees to Tehran's conditions for ending the conflict.

Brent crude settled at $87.11 per barrel on Friday, August 14, a decrease from $88.91 per barrel, while US West Texas Intermediate (WTI) stood at $81.35, slightly lower than $83.20 a day earlier. The Strait of Hormuz, a crucial waterway, saw a sharp decline in traffic during the Iran-Iraq conflict, handling around 125 to 140 vessels daily and accounting for approximately 20% of the global oil supply.

While traffic in the Strait of Hormuz continues to dwindle, US Energy Secretary Chris Wright disputes Kpler's figures, stating that 8 million to 9 million barrels of crude oil are navigating through the Strait of Hormuz each day. Despite the volatility in oil prices since the United States and Israel launched attacks against Iran on February 28, hopes for a ceasefire and a deal to reopen the strait have led to price declines, while renewed tensions have triggered steep increases.

The Philippine Department of Energy is anticipated to unveil the final price changes after the completion of the trading week, with any adjustments set to take effect on Tuesday, August 18, unless market conditions dictate a different outcome.