Israel Raises Gasoline Prices by 61 Agorot Starting August Amid Global Market Turmoil

Starting at midnight between Saturday and Sunday, Israel will see a significant increase in gasoline prices, with the cost of a liter of 95-octane unleaded gasoline at self-service stations rising to 8.09 shekels. This marks a 61 agorot increase compared to the previous price update. The additional charge for full-service gasoline remains unchanged at 25 agorot per liter.

The price hike is attributed to a sharp 22% rise in international gasoline prices, driven by escalating crude oil costs and concerns over supply disruptions amid global energy market instability. Additionally, a 1.9% strengthening of the US dollar against the shekel has contributed to the increase. Bat Sheva Abuhatzira, head of the Fuel and Gas Administration, explained that the gasoline price in Israel reflects ongoing volatility in global energy markets.

This increase follows a 1.03 shekel per liter rise in April and a smaller 2 agorot increase in May, after which prices fell by a total of 59 agorot in June and July. The gasoline price is calculated based on the average fuel prices in the Mediterranean region over five trading days preceding the last two working days of each month, and includes marketing costs, excise tax, and VAT.

The price adjustment comes amid heightened tensions with Iran and currency fluctuations, underscoring the sensitivity of Israel's fuel costs to international developments.