Motorists warned: Fuel price hike possible next week

National

JUST as motorists began to see fuel price rollbacks, new global oil market developments are now pointing to a possible reversal next week.

According to a Philstar report, an industry source projected that pump prices could climb by as much as P1.20 per liter for diesel and P1.50 per liter for gasoline on June 30.

These projections are based on the four-day average of the Mean of Platts Singapore, the benchmark used in pricing refined petroleum products across Asia-Pacific markets.

The outlook, however, remains unsettled. With one more trading day still to be factored in, final price movements could still shift, meaning next week’s adjustment could either increase further or even swing back into a rollback.

Despite some easing in global crude prices, market concerns continue to linger over supply and shipping stability. Attention has been focused on the Strait of Hormuz, a critical passage for global oil transport, where shipping activity has yet to fully return to normal.

Security concerns over maritime activity in the area have resurfaced after a suspected attack on a cargo vessel, raising doubts about the durability of the preliminary agreement.

These developments have kept traders cautious, even after diplomatic progress in the region. Following an interim agreement intended to wind down hostilities, officials from the United States and Iran have begun discussions aimed at securing a final deal within 60 days.

For consumers across the Philippines, the final pump price adjustment next week will depend on how global oil markets move through the remaining trading day leading up to June 30.(MyTVCebu)