The price of 95-octane gasoline in Israel will be 8.27 shekels per liter at self-service stations starting October 1. Including value-added tax, the amount equals $2.69 and will set a record for the price of gasoline per liter in the country.
The new tariff will take effect at midnight between Wednesday and Thursday. This will represent an increase of 52 agorot, or approximately 17 cents, compared with the current price.
Oil prices and exchange-rate gains reflected in new tariff
In a statement carried by Israel’s public broadcaster, the Energy Ministry said gasoline prices in international markets had risen by approximately 13 percent. The ministry said that, in addition to higher oil prices, concerns over crude oil supplies and uncertainty in global energy markets had affected the new tariff.
A roughly 3 percent rise in the dollar exchange rate also contributed to the increase in fuel prices. The dollar was reported to be trading at approximately 3.07 shekels.
Developments at the straits heighten supply concerns
The rise in fuel prices comes at a time of supply problems in global energy markets. The continued closure of the Strait of Hormuz and disruptions to maritime transport in the Bab el-Mandeb Strait have increased concerns about energy supplies.
War broke out between the United States and Israel on one side and Iran on the other on February 28. Iran responded with attacks on Israel and U.S. targets in the region, and the parties reached a ceasefire agreement in April.
Washington and Tehran signed a memorandum of understanding on June 18 regarding freedom of navigation in the Strait of Hormuz. However, implementation of the memorandum was disrupted by disagreements over the strait’s security.
The United States reportedly resumed its attacks on Iran between July 8 and 24, while Iran targeted U.S. military facilities and equipment in Arab countries.
