Israeli Fuel Prices Set to Surge by Up to 30 Agorot Starting August 1
Translated & summarized from Srugim by baba
Fuel prices in Israel are expected to rise sharply by up to 30 agorot per liter starting August 1 due to increased Brent crude prices and a stronger dollar, potentially pushing full-service gasoline above 8 shekels per liter and impacting inflation and monetary policy.
The story in 6 lines · by baba
- Fuel prices in Israel will rise by 25-30 agorot per liter starting August 1.
- 95-octane self-service gasoline will reach about 7.75 shekels per liter.
- Full-service gasoline prices will exceed 8 shekels per liter again.
- Brent crude oil prices jumped 24% due to US-Iran tensions and tanker blockages.
- The dollar exchange rate rose 2.5%, reaching around 3.06 shekels.
- The Ministry of Energy will set official prices after a five-day average next week.
Israeli drivers face a significant blow as fuel prices are expected to rise sharply starting the weekend between July 31 and August 1. The price of a liter of 95-octane gasoline at self-service stations is projected to increase by approximately 25 to 30 agorot, reaching around 7.75 shekels. Full-service gasoline prices are expected to surpass 8 shekels per liter once again.
This anticipated price hike follows a previous drop of 32 agorot on July 1, when prices fell to 7.48 shekels due to a temporary easing of tensions and the reopening of the Strait of Hormuz. However, escalating conflict between the US and Iran and the blockage of oil tankers in the strait have caused Brent crude oil prices to jump about 24%, from $77 at the end of June to approximately $96 currently. Concurrently, the US dollar exchange rate rose by about 2.5%, trading near 3.06 shekels.
The official fuel price will be determined by the Ministry of Energy at the end of next week, based on a five-day average of oil prices and the representative dollar exchange rate. Economic analysts warn that this unusual price increase in early August could fuel inflation and delay the next interest rate cut by the Bank of Israel. Consumer price index forecasts predict a 0.3% rise in July and a 0.7% increase in August.
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