(UPDATE) MANILA, Philippines — Gasoline and diesel prices will increase for the third consecutive week, mainly due to the continued escalation of the Russia-Ukraine war, local oil industry sources said on Friday.

Gasoline prices will go up by around P1.00 up to P1.20 per liter, and diesel prices by about P1.30 up to P1.50.

These estimates are based on the 4-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia.

Gasoline, diesel price hikes seen next week, This news data comes from:http://www.redcanaco.com

Market reactions to recent global oil-related developments, specifically the damage to Russian oil processing facilities by Ukrainian attacks, US imposition of new sanctions on Iran’s oil revenue stream and Saudi Aramco and the halt to exports to India’s refinery by Iraq’s state oil marketer SOMO were cited as the reasons for the new round of increases.

“Oil prices have increased this week due to worries of supply disruptions after Russian oil flows dropped significantly as the country’s oil processing facilities suffered serious damage from Ukrainian attacks. Moreover, worries of possible tighter supply ahead due to fresh US sanctions that targeted Iran’s oil revenue stream and initial market expectations that no change in production output from OPEC+ have also supported the increases,” Jetti Petroleum president Leo Bellas said.

“While traders have initially expected that there will be no change in the production output from OPEC+, the rising prospect that the producer group will consider another hike in production targets in October have prevented prices from going up further due to concerns of oversupply. Doubts on the strength of US demand have also weighed on prices as well. Note however that refined fuel supply fundamentals remain sensitive to trade disruptions which includes any further escalation in geopolitical tensions,” he added.

“Based on 4-day trading in MOPS and estimated relevant expenses, we are expecting an increase in the prices of petroleum products. The bullish price is attributed oil prices rising after the US imposed sanctions targeting Iran’s oil revenue stream, Saudi Aramco and Iraq’s state oil marketer SOMO halting exports to India’s refiner, and the intensified airstrikes between Russia and Ukraine,” Department of Energy-Oil Industry Management Bureau director Rodela Romero said.

This week, local oil companies implemented increases in gasoline and diesel by P0.70 per liter and P1 per liter respectively.