Friday, August 21, 2026

Another Oil Price Hike Looms

FOR THE SECOND consecutive week, motorists were advised to brace for another round of fuel price increase amid continuing Middle East tension that has been preventing cargo vessels from transporting crude oil through the Strait of Hormuz.

Citing estimates based on Mean of Platts Singapore and foreign exchange averages in the past four days, an oil industry source hinted at a P2.25 per liter hike in price of diesel, and around P1.50 per liter for gasoline.

“Oil prices climbed due to a rebuild in the geopolitical premium as prospects for a diplomatic solution to the US-Iran conflict and normalization of navigation through the Strait of Hormuz have dimmed,” the GMA News quoted an industry source.

“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,” the source added.

Fuel firms usually make formal announcements of official price adjustments every Monday for next day’s implementation.

The latest price adjustments, the 33rd movement for 2026, resulted in a total net increase of P53.82 per liter for gasoline, P56.75 per liter for diesel, and P50.65 per liter for kerosene. 

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