Fuel Prices in Israel Set to Drop Sharply Below 8 Shekels Per Liter Next Week

Israeli drivers are expected to benefit from a significant fuel price reduction at gas stations starting next week. The price for self-service fuel is projected to fall by approximately 25 agorot per liter, bringing the cost down to around 7.84 shekels per liter. This drop is largely attributed to a nearly 5% decline in global oil prices, with crude oil currently trading at about 85.2 dollars per barrel, compared to 90 dollars at the previous update. This price change is a key factor in the domestic fuel pricing formula.

However, industry insiders caution that geopolitical tensions remain volatile, particularly around the Strait of Hormuz, which could trigger a sudden spike in global oil prices. Such an event could alter the fuel price calculations and potentially reduce or negate the anticipated price decrease. The current positive momentum follows a recent halt in attacks in Iran, contributing to the sharp fall in oil prices.

The fuel price update reflects ongoing sensitivity to international developments, and while the outlook is optimistic for now, the situation could change rapidly depending on geopolitical events.