The price of gasoline will rise by more than expected because of increasing tensions in Syria and expectations of a US attack.
The price of self-service 95 octane gasoline in September will jump by at least NIS 0.15 per liter at midnight Saturday to NIS 7.75 per liter. The final price has not yet been set; if the situation in Syria worsens over the next three days, the price hike could be greater.
The price of gasoline was expected to rise by NIS 0.10 per liter, of which NIS 0.06 was due to the periodic update in the excise, which is linked to the Consumer Price Index (CPI). However, even before reports about the use of chemical weapons in Syria, the CIF La Vera trade price for fuels in the Mediterranean basin, which accounts for 40% of the retail price of gasoline in Israel, had jumped.
The CIF La Vera price is the average price in the five final trading days of the month, and there are still two trading days left in August for the price to rise further. The pending update will bring the price of gasoline in Israel closer to its peak of NIS 8.25 per liter, reached in September 2012. The current price of NIS 7.60 per liter is NIS 0.17 per liter higher than in July; the rise in CIF La Vera trade prices was responsible for the increase.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013