The price of self-service 95 octane gasoline will rise to an all-time high of NIS 8.25 per liter, from the current NIS 7.70 per liter, in two stages over the weekend.
On Friday night the price will rise by NIS 0.07 per liter, because of the 1% hike in VAT to 17%. On Saturday night, the price will rise by a further NIS 0.48 per liter, because of the update for the price of oil. The total price hike, which takes effect at midnight Saturday, is 7.14%, or NIS 0.55 per liter.
The price of gasoline is based on the average quotes of CIF La Vera trade prices for fuels in the Mediterranean basin, which are then converted from dollars into shekels. The of CIF La Vera trade price of oil rose 14.1% during August to $84.21 per barrel, which was slightly offset by a 1.16% fall in the shekel-dollar exchange rate to NIS 4.0637/$.
The gasoline excise will also rise by NIS 0.02 per liter to NIS 2.99 per liter, 36% of the price at the pump. The excise is the second largest component of the price at the pump, at 36%, behind the price of oil, which is 41%, and ahead of VAT, which is 15%. The fuel companies' marketing margin was left unchanged at NIS 0.64 per liter, or 8% of the price at the pump, after the price hike.
The full-service commission will rise by NIS 0.01, to NIS 0.17 per liter, including VAT, to NIS 8.42 per liter.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2012
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