Israel-Iran conflict to drive major fuel price hike next week

Metro Manila, Philippines - Supply jitters in the wake of the Israel-Iran conflict could trigger a substantial fuel price hike across all products next week, the Department of Energy (DOE) said on Friday, June 20.

Based on the four-day trading data, the DOE said gasoline prices may go up by P2.50 to P3 per liter on Tuesday, June 24.

Diesel may cost P4.30 to P4.80 more per liter, and kerosene P4.25 to P4.40 per liter.

“Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage,” Oil Industry Management Bureau Assistant Director Rodelo Romero said.

Energy officer-in-charge Sharon Garin previously appealed to industry players “to implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices, in order to cushion the impact on local consumers.”

Malacañang has said fuel subsidies are in place for public transport drivers, farmers, and fisherfolk once the price of Dubai crude — the price benchmark for exports to Asia — reaches $80 per barrel. Dubai crude traded at $70.83 per barrel on Wednesday.

Companies on Tuesday implemented an increase of over P1 per liter.

Year-to-date adjustments for gasoline price is a net increase of P6.90, diesel a net increase of P6.65, and kerosene a net decline of P0.75 per liter.