MANILA, Philippines — Local oil industry sources said on Friday that gasoline and diesel prices are expected to increase next week due, again, to the market reacting to recent global developments.

They said that gasoline prices are expected to go up by around P0.40 up to P0.60 per liter, and diesel by around P0.20 up to P0.40 per liter.

These estimates are based on the four-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia.

As mentioned earlier, the reason for next week’s increases are due to the global market reacting to recent world developments, specifically continued tensions around the world between Israel and Iran, and also between Russia and Ukraine, and due to the large drop in US crude inventories and gasoline stocks.

“Based on the four-day trading of Mean of Platts, Singapore, crude oil prices were relatively lower at the start of the week on the prospect that a peace deal in the war in Ukraine would eased sanctions on Russia and bring Russian oil back into global markets.

“However, recent uncertainty over the peace talks has lifted oil prices due to growing concerns that tighter Western sanctions on Russia and additional US sanctions and tariffs on Russian oil buyers will disrupt supply flows. Furthermore, freight and premium levels have remained elevated due to lingering geopolitical risks and concerns,” Jetti Petroleum president Leo Bellas said.

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“In addition, demand optimism went up following a large drop in US crude inventories and gasoline stocks, indicating steady to strong demand during the summer travel season,” he added.

“Based on the four-day trading in the Mean of Platts, Singapore, and relevant news in the international oil market, there will be an increase in the prices of petroleum products by next week. These estimated adjustments are attributed to the decline in the US oil stock for the week ending Aug. 15 pointing to stronger refinery demand, and also the continuing Iran-Israel conflict,” Department of Energy-Oil Industry Management Bureau director Rodela Romero said. This week, local oil companies implemented increases in gasoline prices, and reductions in diesel prices as gasoline went up by P0.60 per liter, and diesel decreased by P0.80 per liter.