Fuel Prices in Israel Set to Rise Significantly from Next Week Due to Middle East Tensions
Translated & summarized from Now 14 by baba
Fuel prices in Israel are set to rise by up to 30 agorot per liter starting early August due to increased Middle East tensions and rising global oil prices. Brent crude oil prices surged 24% and the dollar strengthened against the shekel, both pushing fuel costs higher. The Ministry of Energy will finalize the new prices after reviewing recent market data.
The story in 6 lines · by baba
- Fuel prices in Israel expected to rise 25-30 agorot per liter from August 1.
- Brent crude oil prices increased 24% since late June, reaching around $96 per barrel.
- US dollar strengthened 2.5% against the shekel, impacting fuel costs.
- Price rise linked to Middle East tensions and fears of US-Iran escalation.
- Fuel price update to be finalized by Ministry of Energy next week.
- Previous price cut of 32 agorot on July 1 reversed due to market changes.
Fuel prices in Israel are expected to rise sharply starting next week, driven by escalating tensions in the Middle East and a surge in global oil prices. If the current trend continues through the end of next week, an increase of approximately 25 to 30 agorot per liter is anticipated to take effect between July 31 and August 1. This would push the price of 95-octane gasoline to around 7.75 shekels per liter for self-service and close to 8 shekels per liter for full service.
The recent price hike follows a period of decline after July 1, when fuel prices were reduced by 32 agorot from 7.80 to 7.48 shekels per liter, due to a relative easing of tensions with Iran and the reopening of the Strait of Hormuz, which lowered global oil prices. However, the situation has reversed as Brent crude oil prices jumped from about 77 dollars per barrel at the end of June to around 96 dollars currently, marking a 24% increase. Concurrently, the US dollar strengthened against the shekel from approximately 2.98 to 3.06 shekels, a rise of about 2.5%. Both factors directly impact fuel costs in Israel.
The final updated fuel price will be announced at the end of next week after the Ministry of Energy completes its calculations based on the average oil prices over the last five trading days and the representative dollar exchange rate. The price increase reflects concerns over potential escalation between the United States and Iran amid ongoing regional security tensions.
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