Israel Cuts Gasoline Prices Significantly Starting Tuesday Night
Translated & summarized from Kikar HaShabbat by baba
Israel's Ministry of Energy cuts gasoline prices by 32 agorot per liter starting Tuesday night, lowering the maximum price to 7.48 shekels amid falling international fuel costs. This marks the largest monthly decrease in three months and follows a cumulative 59-agorot drop since April. The price drop reflects easing global energy market tensions and increased oil supply expectations.
The story in 6 lines · by baba
- Israel reduces 95-octane gasoline price to 7.48 shekels per liter from Tuesday midnight.
- Price drop of 32 agorot is the largest monthly decrease in three months.
- Since April, gasoline prices have fallen by a total of 59 agorot per liter.
- International gasoline prices fell about 16% due to easing supply risk concerns.
- US dollar strengthening against shekel limited the price decrease impact.
- Ministry advises consumers to compare gas station prices for best deals.
The Israeli Ministry of Energy and Infrastructure announced a notable reduction in gasoline prices effective from midnight between Tuesday and Wednesday this week. The maximum price for a liter of 95-octane unleaded gasoline at self-service stations will be capped at 7.48 shekels, marking a 32-agorot drop from the previous month. Full-service stations will maintain an additional charge of 25 agorot per liter, unchanged from the last update. In Eilat, the price will decrease by 27 agorot to 6.34 shekels per liter, excluding VAT, with a 21-agorot surcharge for full service.
Betsav Abuhatzira, head of the Fuel and Gas Administration, highlighted that this is the most significant monthly price drop in the past three months, with a cumulative decrease of 59 agorot per liter since April. This trend follows a sharp price increase in April when gasoline prices surged to 8.05 shekels per liter due to the conflict with Iran.
The price decline is mainly attributed to a roughly 16% drop in international gasoline prices, driven by reduced risk premiums in energy markets and easing concerns over potential disruptions in global oil supply. However, a 6% strengthening of the US dollar against the shekel has somewhat offset the price reduction for consumers. Oil prices have fallen to pre-conflict levels as markets anticipate increased oil supply from the Middle East.
The Ministry of Energy urges consumers to compare prices among gas stations to find the best deals. The gasoline price formula is publicly available on the ministry's website and is calculated monthly based on average Mediterranean Basin fuel prices, marketing costs, excise tax, and VAT, converted using the Bank of Israel's official exchange rate.
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