PH petrol prices to suffer as US-Iran conflict halts Hormuz trade movement

Filipino motorists are facing an impending surge in local pump prices after Iran moved to restrict the Strait of Hormuz following coordinated military strikes by the United States and Israel over the weekend. 

The disruption in the world’s most critical maritime oil chokepoint has sent global crude prices soaring, threatening to drive up domestic transport and basic commodity costs in the Philippines.

The Department of Energy (DOE) warned that gasoline, diesel, and kerosene prices could spike by nearly ₱2.00 per liter this week. 

If realized, this will mark the eighth consecutive week of price hikes for gasoline and the 10th for diesel and kerosene. 

The global supply shock stems from severe geopolitical escalations in the Middle East. 

After the US and Israel launched strikes on Iranian targets late last week, Iranian forces retaliated by effectively choking off access to the Strait of Hormuz. 

The narrow waterway is vital to global energy security, handling roughly 20% of global daily oil consumption. 

With the strait paralyzed, major shipping firms like MSC, Hapag-Lloyd, and CMA CGM have ordered their fleets to halt transit or seek safe shelter, trapping an estimated 15 million barrels of crude oil per day.

The sudden loss of supply triggered immediate panic in global energy markets. 

As Asian trading opened on Monday, Brent crude surged by as much as 13% to break past $82 per barrel. 

According to energy analytics firm Kpler, a prolonged blockade could push prices up to $90 or even $100 per barrel as maritime insurance costs become prohibitive and importing nations scramble for substitute supplies.

Energy Secretary Sharon Garin confirmed the inevitability of the local price shock, stating that global market stress will continue to dictate pump prices until tensions ease. 
While the DOE assured the public that the country currently maintains its required minimum 30-day oil inventory, local authorities are closely monitoring the fallout to mitigate the impending economic blow to the transport sector and everyday consumers.