Fuel prices seen rising up to P2/L for gasoline, P1/L for diesel next week, source says

Motorists who just gained a respite from soaring pump prices will have to brace themselves for rising retail rates next week following renewed tensions in the Middle East between the United States and Iran.

An industry insider told GMA News that the prices of motor gasoline and diesel appear to be headed upward, with the following projections:

• Diesel — up to P1.00 per liter
• Gasoline — up to P2.00 per liter

The forecast rates were provided hours after the United States attacked Iran in response to an Iranian drone strike on a cargo ship in the Strait of Hormuz.

The latest developments appear to be a blow to consumers who benefited from rollbacks last Tuesday of up to P11.04 per liter of diesel, P5.90 per liter of gasoline, and P11.82 per liter of kerosene.

At the time, the US and Iran had just signed a ceasefire agreement, in preparation for a longer-lasting peace deal.

Based on data from GMA News Research, gasoline had two consecutive price hikes while diesel had a rollback ahead of the recent adjustments on June 23, Tuesday.

Elsewhere in the Middle East, however, there were signs of progress in ending the four-month-old conflict, as Israel and Lebanon signed an agreement to end the fighting between Israel and Iran-backed Hezbollah.

Both sides framed the deal as an initial step that calls for Hezbollah to disarm and Israel to withdraw troops from Lebanon, but it was not clear how it would be enforced. Hezbollah said it would not cooperate. — VDV, GMA News