Fuel Prices in Israel Hit Record High of 8.25 Shekels Per Liter

Beginning Tuesday, September 1, the maximum price for a liter of 95-octane gasoline in self-service in Israel will rise to a record 8.25 shekels, including VAT. This represents an increase of 16 agorot compared to the previous month's price. Drivers opting for full-service refueling will also pay more, with the additional charge increasing by one agora to 26 agorot per liter.

The Ministry of Energy and Infrastructure attributes the price hike primarily to a roughly 6% increase in international gasoline prices this month. Although the dollar weakened by about 3%, its effect was offset, with the combined impact of international fuel prices and the dollar exchange rate contributing approximately 10 agorot to the rise. An additional 5 agorot increase is due to a bLue component update tied to the index, and a one-agora rise in the marketing margin, part of a semi-annual adjustment, completes the 16-agora increase.

These price hikes come despite earlier expectations that fuel prices might fall below 8 shekels, influenced by a drop in global oil prices. During June and July, prices did indeed dip below the 8-shekel mark. The current increase surpasses even the highest prices recorded during the recent war and its immediate aftermath, which stood at 8.22 shekels.

The increased cost for full-service refueling is also linked to a periodic update, this time reflecting a rise in the minimum wage, which accounts for the extra agora in the service fee. The published prices are maximums, and individual gas stations may charge less.