Israel Sees Significant Drop in Fuel Prices Following US-Iran Ceasefire Agreement

Following the ceasefire agreement between the United States and Iran, Israel is experiencing a notable decline in fuel prices. The Energy Ministry announced that starting midnight between Tuesday and Wednesday, the maximum price for a liter of 95-octane unleaded gasoline at self-service stations will be capped at 7.48 shekels, marking a decrease of 32 agorot compared to last month. The full-service surcharge remains unchanged at 25 agorot per liter. In Eilat, prices will drop to 6.34 shekels per liter (excluding VAT), a reduction of 27 agorot, with the full-service fee steady at 21 agorot.

This price drop is attributed to a 16.4% fall in global oil prices following the ceasefire and the release of tankers in the Persian Gulf. However, the decline was partially offset by a 5.9% rise in the US dollar exchange rate against the shekel. Taxes, including excise and VAT, still account for 63% of the final fuel price, amounting to 4.75 shekels per liter.

Batsheva Abuhatzira, head of the Fuel and Gas Administration at the Energy Ministry, highlighted that this month's 32-agorot decrease is the largest monthly drop in three months, with a total reduction of 59 agorot per liter since April. She explained that the price decline reflects reduced risk premiums in energy markets and easing concerns over global oil supply disruptions. The ministry also urged consumers to compare prices across stations to find the best deals.