Fuel price hikes seen next week

Pump prices of petroleum products are expected to increase next week, the Department of Energy (DOE) said on Friday.

Based on the four-day Mean of Platts Singapore (MOPS) trading, the estimated adjustments in fuel prices per liter for next week are the following:

• Gasoline - more or less increase of P0.95
• Diesel - more or less increase of P0.10
• Kerosene - more or less increase of P0.25

DOE-Oil Industry Management Bureau (OIMB) assistant director Rodela Romero noted that final adjustments will be determined after Friday’s MOPS trading and the inclusion of operating cost of oil companies and other premiums. 

Romero said that the expected fuel price hikes can be attributed to the geopolitical tensions in Iran. 

According to Romero, the risk of supply disruption through the Strait of Hormuz and the uncertainty around Iran nuclear talks added a risk premium.

There was also a report suggesting that the United States may intercept vessels or tankers carrying Iranian crude, adding to supply concern. 

“Together, these factors created a week of cautious but slightly rising crude prices,” Romero said.

Oil companies announce official price adjustments every Monday, to be implemented on the following day.—AOL, GMA Integrated News