Fuel prices may climb further past P100 next week

Motorists in the Philippines may experience yet another surge in fuel prices next week, with gasoline and diesel expected to exceed P100 per liter, according to the Department of Energy (DOE). The projected increases could push premium gasoline, diesel, and kerosene above P100 at some Metro Manila stations by Tuesday, September 15.

Oil Industry Management Bureau Director Rino Abad stated that trading so far indicated another increase across all three petroleum products. Abad explained that diesel and kerosene saw a relatively smaller increase compared to last week, while gasoline remained elevated at a similar price range. Based on the latest pump prices, another increase of around P4 could push the highest gasoline prices to roughly P106 per liter.

Premium diesel might rise to about P104, while kerosene could reach between P103 and P138 per liter depending on the station. These estimates are preliminary, as oil companies usually announce final adjustments on Monday after considering the week's movements in international fuel prices and the peso-dollar exchange rate. Elevated tensions around the Red Sea are adding another layer of risk to oil markets already strained by disruptions in the Strait of Hormuz.

Iran-backed Houthi forces seized the strategic Yemeni port city of Mokha, raising concerns over shipping through a critical route connecting the Red Sea to the Gulf of Aden and, further north, the Suez Canal. Abad emphasized that the Houthi advance could add another factor to the ongoing challenges in the Strait of Hormuz. Brent crude prices surged to nearly $110 a barrel after jumping about 6% in the previous session due to concerns over supply routes in both Hormuz and the Red Sea.