Fuel Prices in Israel Poised for Sharp Rise, Expected to Exceed 8 Shekels Again

Drivers in Israel are bracing for another significant fuel price hike, with the cost of a liter of 95-octane gasoline expected to surpass 8 shekels starting Thursday. Energy market analysts anticipate an increase of approximately 25 to 40 agorot per liter, bringing the price to between 8 and 8.15 shekels. This rise is attributed to the ongoing tensions in the Strait of Hormuz. The current price for self-service 95-octane gasoline stands at 7.75 shekels, and with the added 26 agorot for full service, the increase will translate to an additional 15 to 20 shekels per fill-up for the average Israeli driver.

This anticipated surge follows a period of consistent price increases throughout the past few months. In early September, gasoline prices reached a record high of 8.25 shekels, matching the all-time peak from September 2012. A subsequent reduction in excise duty by half a shekel brought the price down to its current level. Global crude oil prices and a weakening Israeli shekel against the US dollar have been the primary drivers of these recent increases, placing a strain on household budgets. The upcoming price adjustment, if realized, will once again push the price into the 8-shekel range.