Fuel Prices to Rise Again Amid US-Iran Agreement Uncertainty

Fuel prices in the Philippines are set to rise again next week due to market uncertainties caused by the expiration of the US-Iran agreement. The Mean of Platts Singapore suggests a possible price hike of P1.75 to P2.25 per liter for diesel and P1 to P1.50 per liter for gasoline on August 25.

The International Energy Agency expects global oil demand to weaken further in the second half of the year due to disruptions in international supply chains, particularly in the Strait of Hormuz. The agency forecasts a decline in global oil demand by an average of 1.6 million barrels per day this year.

Jetti Petroleum president Leo Bellas attributes the price increase to mounting market uncertainties and growing risks to Russian oil supplies. 'With the expiration of the mid-June US-Iran MOU and both sides expressing intentions to take a harder line, markets are pricing in the possibility of a prolonged crisis,' he said.