Philippines to raise fuel prices: Petrol rates spiking in 3rd week of August

Manila: Filipino motorists may face another round of fuel price increases next week as international oil prices climbed sharply amid renewed uncertainty over the reopening of the Strait of Hormuz and the prospects for a US-Iran peace deal.

Based on the first two trading days of the week, petroleum products were already posting substantial increases.

The estimates remain subject to changes in global oil prices and the peso-dollar exchange rate through the end of the trading week.

Jetti Petroleum President Leo Bellas said oil prices could ease during Thursday and Friday trading, but the expected decline would likely be insufficient to offset the sharp increase recorded on Tuesday, as per ABS-CBN News.

Bellas attributed the latest surge to declining optimism over the reopening of the Strait of Hormuz and the possibility of a broader peace agreement in the Middle East.

Oil prices rose for a second consecutive session on Aug. 11 after Iran indicated that the strategic waterway would remain closed unless the United States changed its position and accepted Tehran’s conditions for ending the conflict.

Brent crude settled at $87.11/barrel as of 2.32pm Tokyo on Friday (Aug. 14), down from $88.91/barrel, while US West Texas Intermediate (WTI) was at $81.35 on Friday, slightly down from $83.20 a day earlier.

Traffic through the vital waterway had fallen sharply during the conflict with Iran.

Before the conflict, the waterway handled roughly 125 to 140 vessels daily and carried about 20% of global oil supply, as per maritime industry tracker Kpler.

On Thrusday, US Energy Secretary Chris Wright disputed Kpler's tally, claiming that 8 million to 9 million barrels of crude oil are moving through the Strait of Hormuz each day.

Oil prices have swung sharply since the United States and Israel launched attacks against Iran on Feb. 28.

Hopes of a ceasefire and an agreement to reopen the strait have repeatedly pushed prices lower, while renewed tensions have triggered steep increases.

Brent crude jumped nearly 5% on Aug. 10 after Washington and Tehran exchanged demands for compensation, further weakening expectations of an immediate peace agreement.

The Philippine Department of Energy is expected to announce the final price adjustments after the full trading week.

Any increase would take effect on Tuesday, Aug. 18, unless market conditions produce a different adjustment.