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Photo: Moti Kimchi
Fuel prices after hike in early September (archives)
Photo: Moti Kimchi

Petrol prices may drop in October

Since fuel price reached all-time high of NIS 8.25 per liter in early September, oil prices have fallen from $96 to $93 a barrel

Petrol prices in Israel may drop by NIS 0.25-0.30 (about 6-8 cents) per liter in early October, according to estimates in the energy sector. The price of 1 liter of gasoline currently stands at NIS 8.25 ($2.12).

 

Fuel prices are mainly affected by two variables: The price of oil distillates in the Mediterranean Basin and the exchange rate of the US dollar – the currency used in transactions.

 

Other variables affecting fuel prices are the direct and indirect tax rates imposed on gasoline and fuel companies' marketing margins, which do not change very frequently.


תורים למילוי דלק, רגע לפני שהתייקר לשיא (צילום: עופר עמרם)

Queuing at gas station before price hike (Photo: Ofer Amram)

 

As far as the first two variables are concerned, oil prices have fallen from $96 a barrel in late August to $92.88 a barrel today. At the same time, the dollar's exchange rate has fallen from NIS 4.043 in late August to NIS 3.9, which may also lead to a reduction in fuel prices.

 

Final price to be determined

The final price of gasoline for October will be determined by the Oil and Gas Department at the Ministry of Energy and Water Resources at the end of September, by calculating the average price of oil distillates in the Mediterranean Basin and the US dollar's exchange rate in the last five trading days of the month.

 

The current price of petrol was determined in late August and reached an all-time high – NIS 8.25 per liter for self-service 95 octane gasoline. The full-service commission adds NIS 0.17 (4 cents) per liter.

 

According to figures compiled by the Energy and Finance ministries, 1,577 million tons of gasoline were sold in Israel from January to July 2012 – a 4% increase compared to the same period last year.

 

The State's revenue from fuel taxes during that period reached NIS 9.182 billion ($2.35 billion).

 

 


פרסום ראשון: 09.20.12, 13:07
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