Fuel Prices in Israel Set for Sharp Increase Amid Strait of Hormuz Tensions

Consumers in Israel are bracing for another significant rise in fuel prices, with estimates suggesting a sharp increase will take effect at midnight between Wednesday and Thursday. The primary driver behind this anticipated surge is the ongoing instability and chaos in the Strait of Hormuz, a critical chokepoint for global oil and energy supplies. Energy market analysts predict the price of gasoline will jump by approximately 25 to 40 agorot per liter.

This increase is expected to push the price of a liter of 95-octane gasoline at self-service stations past the psychological threshold of eight shekels once again. For Israeli drivers, this translates to an additional burden of about 15 to 20 shekels for an average refueling. The broader economic impact is also a concern, with potential repercussions for the consumer price index and the overall cost of living.

Currently, a liter of 95-octane gasoline at self-service stations costs 7.75 shekels, with a 26 agorot per liter surcharge for full-service. This follows a period earlier in September when prices matched an all-time record of 8.25 shekels per liter, a level last seen in September 2012, before a reduction in excise duty brought the price down by half a shekel.