The Energy and Water Ministry published the gasoline prices for June which came into effect at midnight on Thursday night. The price of 95-octane gasoline has been set at NIS 7.43 ($1.92) per liter for self service, a drop of NIS 0.22 from last month or 2.88%.
The price of full service 95-octane gasoline was set at NIS 7.59 ($1.96) a liter, a drop of NIS 0.27 or 3.44%. This after the energy Ministry lowered the fuelling commission by NIS 0.05.
The reduction in gasoline prices comes as a result of the decrease in petrol prices in Europe over the last few months. A more significant reduction in prices was prevented when the High Court ruled that the government must increase the gas companies market margin from NIS 0.58 per liter to NIS 0.63 per liter.
Oil prices down to $88 a barrel for the first time since November, leading to the June decrease which is offset in part by a 2.62% rise over the past month in the value of the dollar.
The price reduction is the second in two months. At the beginning of May, the price of gasoline was reduced by NIS 0.15 per liter, a development that many in the energy sector attribute to easing tensions between the West and Iran.
Despite the encouraging news, a tax credit of NIS 0.15 per liter issued by Prime Minister Benjamin Netanyahu in March is due to expire within a month.
This marked the third tax credit given by the state in 2012; after a NIS 0.40 per liter price hike was nixed in February, Netanyahu decided on an additional discount of NIS 0.10 per liter.
The additional discount of NIS 0.15 per liter is expected to create a NIS 300 million ($78 million) hole in the Treasury's annual revenue, and the government is not expected to hasten to extend the tax credit.