Fuel prices will rise by up to PHP1.90 per liter on Tuesday, March 3, marking the eighth straight weekly increase, largely due to Middle East tensions.
In an advisory Monday, Seaoil said gasoline prices will increase by PHP1.90/liter, diesel by PHP1.20/liter, and kerosene by PHP1.50/liter effective 6 a.m. Tuesday.
Citing global market trends, Michael Ricafort, chief economist of Rizal Commercial Banking Corporation, said crude oil prices at the New York Mercantile Exchange rose about 6.1 percent to USD71.08 per barrel in Monday trading, below the USD75.33 intraday high.
The spike followed US and Israeli attacks on Iran that killed its supreme leader, Ali Khamenei, and Tehran’s retaliatory strikes.
Ricafort said the developments weakened the US dollar, which opened at 57.85 from 57.7 last Friday.
He said oil price movements “would lead to higher local fuel pump prices and some pick up in overall inflation.”
“Still wait-and-see for the markets, especially if there would be volatility in global oil/energy prices and potential disruption of global oil/energy supply chains,” he added.
Senators on Monday urged the government to prepare contingency measures as escalating tensions in the Middle East threaten to trigger another round of oil price hikes that could affect transport groups, farmers and fisherfolk.
Senator Raffy Tulfo said authorities must be ready to roll out fuel subsidies once global prices spike, warning of ripple effects on public utility drivers and food producers.*
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