Fuel Prices Set to Drop: Price of 95 Octane Gasoline to Fall to NIS 7.16 per liter

Starting at midnight between Monday and Tuesday, the price of 95 octane gasoline in self-service stations will decrease by 13 shekels, bringing it to NIS 7.16 per liter (including VAT). This marks the third consecutive decline since August.

For full-service refueling, the price will remain unchanged at 24 shekels per liter (including VAT). In Eilat, the maximum price for unleaded 95 octane gasoline will drop by 11 agorot to NIS 6.12 per liter (excluding VAT).

Factors Influencing Price Change

The monthly fuel price is determined by a formula that takes into account the dollar exchange rate and oil prices in the Mediterranean region. This month's significant decrease can be attributed to falling oil prices and fluctuations in the dollar exchange rate, driven in part by recent escalations in the north.

Recent Trends in Fuel Pricing

Fuel prices have been on a downward trajectory since peaking in May of this year, when the cost approached 8 shekels per liter. Since then, prices have fluctuated, dropping to NIS 7.90 in June, slightly rising to 7.56 in July, and then declining to NIS 7.48 in August. In September, the price was significantly reduced to NIS 7.29.

The all-time high for 95 octane gasoline was recorded in September 2012 at NIS 8.25. Following public outcry over rising costs and protests for "social justice" in 2011, then-Prime Minister Benjamin Netanyahu proposed a fuel tax reduction. This tax discount was later canceled but reintroduced by Finance Minister Avigdor Lieberman in summer 2022 as prices surged again.

However, in early 2024, the current Minister of Finance, Bezalel Smotrich, canceled the fuel tax subsidy due to a growing budget deficit following ongoing conflict in the region.

As fuel prices continue to fluctuate, consumers are likely to feel the impact of these changes in their daily expenses.