Big-time oil price hike set for June 17 amid Middle East tension

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MANILA, Philippines – As widely expected, oil companies announced a big-time pump price hike of almost P2 per liter effective Tuesday, June 17, mainly due to the escalating tension in the Middle East.

Big-time oil price hike Set for June 17 amid Middle East tension

Firms announced in separate advisories that gasoline and diesel prices would climb by P1.80 per liter each, while kerosene prices will increase by a smaller P1.50 per liter.

PTT Philippines will implement the price increases on Tuesday at 6 a.m., followed by Caltex Philippines at 6:01 a.m. and Cleanfuel at 4:01 p.m.

READ: Oil prices rise further as Israel-Iran extends into fourth day

This marks the fifth consecutive week that gasoline prices have risen.

Last week, industry sources projected a hefty fuel price hike, as global oil prices have spiked by some 5 percent due to the escalating conflict between Israel and Iran.

“Increased concerns of escalating tensions in the Middle East that could disrupt oil supplies following Israel’s attack on Iran have pushed crude prices up by 5 percent,” Jetti Petroleum president Leo Bellas said.

Rodela Romero, assistant director of the Department of Energy’s Oil Industry Management Bureau, cited other factors behind the looming price adjustment: crude prices’ extended gains over positive United States-China trade talks, Organization of the Petroleum Exporting Countries’ optimism about oil demand growth and stalled negotiations between America and Iran.

As of Monday, Asian benchmark Dubai crude fell by 0.58 percent to end at $67.41 per barrel. Global benchmark Brent crude settled at $74.96 per barrel, up by 0.98 percent.