Oil firms raised pump prices by as much as P0.90 per liter effective 6 a.m. today (Tuesday) to reflect the movement of prices in the world oil market.
Prices of diesel and kerosene went up by P0.90 per liter each while prices of gasoline increased by P0.30 per liter amid the ongoing tensions in the Red Sea.
Seaoil Philippines, Chevron Philippines, Cleanfuel, and PetroGazz advised the public of the latest oil price increases. Other oil companies are expected to follow.
“Reasons for the increase are concerns about escalating conflict in the Middle East with more attacks on Gaza and the shipping issue in the Red Sea,” Department of Energy director for the oil industry management bureau Rodela Romero said last week.
Oil prices climbed after United States and United Kingdom forces launched strikes against Iran-backed Huthi rebels last week.
Crude prices spiked more than four percent Friday before ebbing somewhat after the allies launched deadly strikes following weeks of disruptive rebel attacks on Red Sea shipping.
“The fear in the oil market is that the region is on an unpredictable escalating path, where at some point down the road, supply of oil will indeed in the end be lost,” noted Bjarne Schieldrop, chief commodities analyst at SEB bank.
He noted that if the US-UK attacks were unsuccessful in destroying Huthi weapons, and oil tankers need to go around Africa, then up to 80 million barrels will be locked in transit – sending prices up as much as $5 to $10 per barrel.
The Huthis have carried out a growing number of strikes on vessels in the Red Sea, a key international shipping route since the Gaza war erupted in October.
The attacks have affected trade flows at a time when supply strains are putting upward pressure on inflation globally.
Electric car manufacturer Tesla earlier announced it is suspending most production at its factory in Germany for two weeks, citing a shortage of parts due to shipping delays caused by Huthi rebel attacks in the Red Sea.
The Red Sea attacks had led to delays that created a “gap in the supply chains,” resulting in production at the facility southeast of Berlin being suspended “with the exception of a few sectors,” Tesla said in a statement. With AFP