Diesel price hike of up to P10.50/L, gasoline P4.50/L seen next week

Major pump price hikes are expected next week, P10.50 per liter increase in diesel and P4.50 in gasoline amid renewed tensions in the Middle East, according to an oil industry source.

Below are the estimated fuel price adjustments next week based on this week’s MOPS and forex averages:

• Diesel +9.50 to +10.50
• Gasoline +3.50 to +4.50

"World oil prices are mainly supported by an elevated geopolitical risk premium, which rebuilt after Iranian attacks on commercial ships attempting to transit the Strait of Hormuz outside the Iranian-approved route, and the retaliatory strikes by the US on Iranian military assets," the oil industry source said.

"Worries of supply disruption, tightening product balances as vessel traffic in the Strait of Hormuz declined sharply, and the US naval blockade of ships to and from Iranian ports have pushed prices higher," it added.

The oil industry source also said that the decline in diesel exports from Russia also affected the price movement.

On Thursday, President Ferdinand “Bongbong” Marcos Jr. announced that the government has expanded the United Package for Livelihoods, Industry, Food, and Transport (UPLIFT) program, providing financial assistance to indigent Filipinos affected by rising fuel prices.

The President said that through the UPLIFT Assistance, 7.5 million households or 37.5 million Filipinos nationwide will receive cash assistance from the government.

Specifically, Marcos said that 3.5 household beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and the Walang Gutom Program will receive a one-time additional assistance of up to P2,000. —VAL, GMA News