There will be new wave of consumer frustrations at the domestic pumps this week because of the fresh wave of oil price hikes enforced by the oil companies across all fuel commodities.

Based on the price adjustment advisories of the industry players, the price of diesel products will rise by P0.95 per liter; while gasoline prices will increase by P0.40 per liter; and kerosene prices will go up by P0.85 per liter.

As of this writing, the oil firms that already sent notices on their price hikes effective Tuesday (April 16) had been Shell Pilipinas Corporation, Seaoil Philippines, Cleanfuel, PetroGazz, Jetti Petroleum and Chevron as advised to the Department of Energy (DOE); while competitor-firms are anticipated to follow the implemented pricing trends.

Last week’s escalation of prices in the regional and global markets had been due to array of factors – including niggling geopolitical tension in the Middle East, reported inflation adjustments in major economies like the United States and China; as well as typical fluctuations in supply-demand dynamics.

In particular, the decision of the Organization of the Petroleum Exporting Countries and ally-producers (OPEC+) to extend production cuts until mid-year still had its impact on market trading outcomes last week.

In the days and weeks ahead, market developments seem turning for the worse with the escalation of friction between Israel and Iran over the weekend.

With Iran launching its attack on Israel, there are expectations that the latter would retaliate and that will just exacerbate geopolitical impacts that have been hounding oil markets since the explosion of the Russia-Ukraine War in 2022; then the eventual skirmish with Hamas-allied militants at the Red Sea since November last year.

As of Monday (April 15) trading, international benchmark Brent crude has been trending back into its elevated cost level -- hitting beyond $90 per barrel, but the full impact of the Israel-Iran skirmish has yet to reflect in oil pricing play.

Industry experts are also sounding off apprehensions that if the United States would dip its hand and will back Israel in its war with Iran, then that development may blow up into World War III, especially if China and Russia will be aiding Iran in its offensive.

For an oil import-dependent economy like the Philippines, the incessant rise in oil prices due to armed conflicts that are happening in various parts of the world would just aggravate financial burden not just on the wallets of individual consumers, but also on higher costs that will weigh down on targeted economic growth.