Blow to Israelis' Wallets: Gas Prices to Spike Sharply
Israeli drivers face a sharp increase in gasoline prices at the beginning of August. The cost of fuel may rise by 25–30 agorot per liter, nearly wiping out the July decrease of 32 agorot. Causes include a jump in oil prices above $100 per barrel, Houthi attacks on tankers in the Red Sea, and the strengthening of the dollar against the shekel. Additional costs for one fill-up of a standard tank will be about 13.5 shekels.
Israeli drivers can expect a noticeable increase in fuel prices at the beginning of August. According to updated calculations, the price of 95-octane gasoline may rise by 25–30 agorot per liter, almost completely offsetting the July decrease of 32 agorot and bringing the price per liter with full service close to 8 shekels. One of the main reasons is a new jump in oil prices above $100 per barrel. Additional pressure came from Houthi attacks on tankers in the Red Sea, heightening concerns about supply stability. Another factor is the strengthening of the dollar against the shekel, adding about five agorot to each liter. For a standard 50-liter tank, the extra cost will be about 13.5 shekels per full fill-up. About 63% of the final amount consists of taxes, including excise and VAT, while about 28% of the gasoline price depends on oil costs. The high tax component partially smooths out the impact of global price fluctuations, but also means that a significant portion of the gasoline price is largely independent of oil price decreases. If the calculations are confirmed, the July respite for motorists will be short-lived—from August 1, the price will again approach levels before the last decrease.