Oil price hike looms next week

By Alvin Elchico, ABS-CBN News

Posted at Jan 06 2012 05:56 PM | Updated as of Jan 09 2012 03:58 AM

MANILA, Philippines - Motorists will have to brace for another substantial spike in prices of petroleum products next week.

The Department of Energy has confirmed that indeed prices are likely to go up next week based on Monday to Thursday prices in the international market.

ABS-CBN sources have confirmed that world gasoline prices have already increased by around P1.75/liter while diesel prices rose by around P1.30/liter in the international market. 

The tension in the Strait of Hormuz prompted by fresh sanctions against Iran have contributed to the spike in fuel prices.

The renewed tensions in Bahrain and Syria have also added to the uncertainty.

According to Zenaida Y. Monsada, director of the DOE's Oil Industry Management Bureau, the threat of supply disruption causes traders to speculate which push prices up.

She said the team that will investigate if fuel is overpriced in the country will begin its review on February 1. But the final list of members and terms of reference are still being finalized.