not everywhere· Economy· Updated 29 Oct, 22:17

Israel Gas Prices to Drop Briefly Before Potential Surge

The price of 95-octane gasoline in Israel will decrease by 42 agorot to NIS 7.35 per liter for self-service starting Sunday, November 1. This reduction, announced by the Ministry of Energy and Infrastructure, brings fuel costs down from the current NIS 7.77 per liter, while the additional charge for full service remains unchanged at 26 agorot per liter.

8 newsrooms · 2 languages · since 29 Oct, 14:30

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Israel Gas Prices to Drop Briefly Before Potential Surge — Illustration by baba

What happened

01The price of 95-octane gasoline will drop by 42 agorot to NIS 7.35 per liter for self-service starting Sunday, November 1.
02Gasoline prices could surge by a full shekel to NIS 8.35 per liter on Thursday, November 5, if a tax reduction is not extended.
03The potential price hike depends on Finance Minister Bezalel Smotrich renewing a temporary excise tax cut set to expire on November 4.
04The fuel tax reductions have cost the state treasury between NIS 360 million and nearly 500 million shekels per month.
05High global fuel costs are driven by Brent crude oil prices reaching $115 per barrel and rising refining margins.
06Global supply disruptions contributing to high prices include issues at the Strait of Hormuz and Ukrainian attacks on Russian refineries.
07The additional charge for full service at gas stations will remain unchanged at 26 agorot per liter.

This relief is expected to be short-lived, as prices could surge by a full shekel to NIS 8.35 per liter on Thursday, November 5. The potential spike hinges on whether Finance Minister Bezalel Smotrich extends a temporary excise tax reduction that is scheduled to expire on November 4. The tax cuts, which previously reduced excise and VAT by one shekel per liter, have cost the state treasury between NIS 360 million and nearly half a billion shekels per month.

High fuel costs have been driven by elevated global oil prices, with Brent crude at $115 per barrel, and rising refining margins. These are influenced by global supply chain disruptions, including Iran's blockade of the Strait of Hormuz and Ukrainian attacks on refineries in Russia. The Ministry of Energy and Infrastructure has advised drivers to compare prices across different gas stations to find the most economical option.

Summarized by baba from the reports of 8 newsrooms. Updated 30 Oct, 01:01