Geopolitical developments overseas are projected to result in up to PHP0.50 per liter increase in domestic fuel prices next week.
Citing price developments as of Dec. 25, Jetti Petroleum president Leo Bellas, in a report, said diesel prices are expected to increase between PHP0.30 to PHP0.50 per liter, and gasoline by up to PHP0.10 per liter.
“Oil prices have been supported by geopolitical developments as the tougher U.S. sanctions enforcement on Venezuela and intensified attacks by Ukraine on Russian oil infrastructures have raised the risk of supply disruptions,” he said.
“Supporting prices as well is the prospect of a bigger supply risk due to new sanctions on Russia if Moscow does not agree to the Ukraine peace deal,” he added.
The Trump government has intensified its sanctions on Venezuela on claims that the South American country lacks support on the U.S. drive against illegal drugs and the anti-terrorism campaigns.
Meanwhile, large fuel infrastructure in the Russian port city of Temryuk were damaged on the morning of Christmas Day after several drone attacks, following Russia’s nighttime drone attacks on Ukraine, officials from both countries have reported.
This impacts on oil supply, which was earlier projected for oversupply in the first quarter of 2026.
The projected oil price hike next week runs counter to the up to PHP0.80 per liter reduction in domestic products this week. *PNA