Motorists face one of the largest weekly fuel price increases on record as escalating military conflict in the Middle East disrupts global supply chains and drives regional benchmarks higher.
Diesel prices may rise by as much as ₱16 per liter next week, while gasoline is projected to increase by ₱7.70 per liter, according to preliminary trading data.
The spike follows a volatile three-day trading period for the Mean of Platts Singapore (MOPS), the primary pricing benchmark for refined petroleum in Southeast Asia.
Crude oil markets have remained under intense pressure since the March 1 escalation of hostilities involving the United States (US), Israel, and Iran, which has forced the closure of the Strait of Hormuz and suspended approximately 20% percentof global seaborne oil traffic.
“World oil prices are likely to remain volatile with high upside bias,” an industry expert said on Wednesday, March 5.
The upward momentum in Singapore trading reflects the growing risk premium as traders account for the physical disruption of oil flows from major Middle Eastern producers to Asian refineries.
The Department of Energy (DOE) is now weighing a series of interventions to blunt the inflationary impact of the surge.
As of early March, gasoline in Metro Manila typically retailed between ₱53 and ₱70.5 per liter, while diesel was priced between ₱60.79 and ₱61.49.
A ₱16 adjustment would represent a nearly 25 percent overnight jump for diesel, potentially triggering fare hikes in the transport sector and adding pressure on the central bank to manage headline inflation. (Gabriell Christel Galang)
