Fuel Prices in Israel Poised for Significant Increase

Gasoline prices in Israel are expected to rise significantly, potentially reaching around 8.15 shekels per liter for 95 octane self-service fuel. Initial estimates suggest an increase of between 25 and 40 agorot per liter, with the new price expected to take effect at midnight between Wednesday and Thursday. The final price, however, has not yet been determined.

This anticipated hike follows a previous price of 8.25 shekels per liter in September, which was later reduced by approximately 50 agorot due to a fuel tax cut, bringing the current price to 7.75 shekels. If the increase reaches the higher estimate of 40 agorot, filling a car's tank could cost an additional 15 to 20 shekels, depending on tank size.

The final price remains contingent on international fuel market prices and the dollar-to-shekel exchange rate prior to the update, meaning the actual increase could be less than currently projected. These forecasts are occurring amidst global energy market volatility, driven by tensions around the Strait of Hormuz, which is putting upward pressure on oil and fuel prices worldwide. This could subsequently impact transportation and production costs, as well as the prices of various goods and services.