Israeli Fuel Prices Set to Surge by Up to 30 Agorot Starting August 1

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.