Gas prices may change sharply within a week
After a sharp increase in August, gasoline prices in Israel are expected to drop in September by about 25 agorot per liter, to 7.84 shekels. The reason is a 5% decline in global oil prices, but the strengthening of the dollar partially offsets the effect. The main risk remains tensions around the Strait of Hormuz and the incident in the Red Sea, which could overturn the forecast.
Gas prices in Israel may change sharply within a week. After a sharp August increase, when a liter of 95-octane gasoline rose by 61 agorot to 8.09 shekels, a decrease is expected in September. Preliminary calculations, based on data from Israel Hayom, indicate a reduction in the maximum price by about 25 agorot — to 7.84 shekels per liter. The main factor in the price drop is the fall in global oil prices: since the previous calculation, oil has lost about 5% of its value, with US WTI dropping from $90 to $85 per barrel. However, part of this effect is offset by the dollar, which has strengthened against the shekel by about 0.7% — from 2.97 to 2.99 shekels. The final tariff will be determined at the end of August, so the forecast may change. The main risk remains tensions around the Strait of Hormuz, through which a critical portion of global energy supplies passes. Commercial shipping traffic there remains about 90% below pre-war levels. Additional uncertainty was created by an incident in the Red Sea, where an unknown projectile struck a tanker west of the Saudi port of Yanbu. Yanbu holds strategic importance for Saudi Arabia, allowing oil exports to bypass the Strait of Hormuz. Further escalation on two key routes could quickly raise global oil prices and overturn the expected price reduction in Israel.