MANILA — Fuel prices in the Philippines are expected to increase next week, with diesel possibly rising PHP0.40 to PHP0.60 per liter and gasoline up to PHP0.10 per liter, amid supply risks linked to geopolitical tensions between the U.S. and Iran, among other factors.

Jetti Petroleum president Leo Bellas said in a Friday report that the recent oil price movements reflect the market’s reaction to potential supply disruptions in the event of a conflict between the two countries.

“This week’s oil price movement is primarily due to the market’s reaction to developments between the US and Iran by pricing in the additional risk of supply disruption in the event of conflict,” Bellas said.

He noted that Mean of Platts Singapore (MOPS) prices have surged over 5 percent since the February 16 settlement, as concerns over military activities increased the likelihood of U.S. strikes on Iran and lowered expectations for a diplomatic resolution.

“While this week’s gasoline MOPS prices have actually softened due to healthy regional inventories and supply, rising freight and premium due to geopolitical risks have offset the prospect of a potential price rollback,” Bellas added.

The impact on domestic prices is partly tempered by the stronger Philippine peso, which has strengthened to around PHP57 against the U.S. dollar.

Oil prices have been climbing for six consecutive weeks, with gasoline up PHP1.20 per liter and diesel and kerosene increasing by PHP0.60 per liter this week.