MANILA – Motorists may face higher fuel prices next week, with diesel expected to post the biggest increase following recent military attacks involving the United States and Iran.

Jetti Petroleum president Leo Bellas said on Friday that diesel prices could increase by PHP1 to PHP3 per liter, while gasoline prices may either go down or rise by as much as PHP1 per liter.

The projected adjustments are based on oil price movements recorded as of Thursday.

Bellas said recent developments in the Middle East have affected the global oil market.

“Last week’s attacks on commercial vessels and the military strikes by the U.S. and Iran over the weekend have exposed the fragile normalization of commercial traffic in the Strait of Hormuz.”

He added that while crude oil prices have eased due to improving supply expectations and optimism over possible peace talks between the United States and Iran, diesel prices have continued to climb.

“While crude oil prices have softened because of easing supply concerns and optimism over the U.S.-Iran peace talks, diesel and middle distillate prices have strengthened due to signals of tight fundamentals.”

Bellas also said gasoline prices in Asia remain supported by market demand despite adequate regional supply.

“Asian gasoline prices are buoyed by firm demand and limited exports from China, although further upside is capped by signs of healthy supply in the region.”

Earlier this week, the Department of Energy announced the range of possible fuel price adjustments, allowing gasoline prices to either decline by as much as PHP0.10 per liter or increase by up to PHP1.90 per liter.

For diesel, prices were allowed to decrease by as much as PHP1.16 per liter or rise by up to PHP0.84 per liter. Kerosene prices, meanwhile, were permitted to either drop by as much as PHP0.78 per liter or increase by up to PHP1.22 per liter.