Fuel prices in the Philippines could settle at around P100 per liter as the “new normal” and would remain high until the end of the year due to prolonged geopolitical tensions in the Middle East, an energy expert warned on Wednesday.

Lawyer Jay Layug, executive board member of the Philippine Energy Research and Policy Institute, said sustained volatility in global oil markets driven by the ongoing conflict involving the United States, Israel and Iran was expected to keep domestic pump prices high despite the temporary ceasefires.

“I think until year-end, it will remain high… because I don’t think the war will end by December from the looks of it. So we will be facing high oil prices,” Layug said in an interview on Bilyonaryo News Channel’s “At the Forefront” program.

He said oil markets have become highly sensitive to developments in the region, with prices reacting almost immediately to military and diplomatic actions.

“I think the new normal now would be around P100 per liter. I’ve said that two weeks ago only because the market really is reacting to every single incident in the Middle East,” he said.

“And this time, unlike 2011 when I was still at the DOE, the war is even wider in magnitude,” he added.

Layug said any short-term price relief would likely be temporary as long as uncertainty persisted in major oil-producing regions.

He noted that measures, such as ensuring safe passage through critical chokepoints, like the Strait of Hormuz, may help stabilize supply flows, but would not address the underlying drivers of high prices.

“But price, unfortunately, will always be affected until the war is there,” he said.

He pointed out that the Philippines, which relies heavily on imported fuel, remained particularly vulnerable to external shocks, with local pump prices largely dictated by global market movements.

https://bnc.bilyonaryo.com/p100-liter-fuel-seen-as-new-normal-energy-expert/news/

Lawyer Jay Layug: I think the new normal now would be around P100 per liter