Gasoline prices to fall for first time in 2024

After five straight months of rises, the maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will fall on Saturday at midnight for the first time in 2024. From June 2, the price will fall by NIS 0.38 per liter to NIS 7.52 per liter, the Ministry of Energy and Infrastructure has announced.

The main reason for the fall in gasoline prices is the fall in the value of the US dollar against the shekel in recent weeks alongside a small moderation in global oil prices. Since December 2023, the price of 95 octane gasoline in Israel has risen by NIS 0.96 from NIS 6.94 to NIS 7.90 at the start of this month.

Even after the drop in price in June, consumers will not enjoy the prices available between April 2022 and the end of 2023, when the Ministry of Finance reduced excise by varying amounts to keep price controlled 95 octane gasoline stable at just below NIS 7 per liter. As part of the cuts to the revised 2024 state budget, it was decided to cancel the excise reduction, which last year cost the state coffers more than NIS 1 billion in lost revenue.

Published by Globes, Israel business news - en.globes.co.il - on May 30, 2024.