The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will fall on Saturday at midnight November 1, 2026, by NIS 0.42 per liter to NIS 7.35 per liter from NIS 7.77, the Ministry of Energy and Infrastructure has announced. The charge for service at pumps will remain at NIS 0.26 per liter.
However, the price fall will only be temporary. On November 4 the NIS 1 cut in excise tax will expire and on the assumption that it will not be renewed the maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will jump to NIS 8.35.
Fuel prices remain at historically high levels. This is due to a combination of exceptionally high oil prices, with a barrel of Brent crude currently trading at $115, and an unusually large "refining margin." The high cost of oil stems from Iran’s actions in the Strait of Hormuz, which hinders the transport of crude oil from the Gulf. While the volume of oil passing through the Strait has largely returned to pre-war levels, the surge in transit costs, compounded by geopolitical fears of further escalation, has added a massive premium to the price of crude oil. Furthermore, a significant portion of global refining capacity is effectively cut off due to the situation at the Strait of Hormuz, while other capacity has been impacted by long-range Ukrainian strikes against Russia, one of the world’s largest fuel exporters.
This combination of factors pushed fuel prices to an all-time high in October (8.77 shekels per liter). In response, and with elections approaching, the government authorized two separate cuts to the excise tax, each by NIS 0.50 per liter. This tax cut, enacted via an emergency order effective until November 4, lowers the price of fuel by NIS 1 per liter.
Published by Globes, Israel business news - en.globes.co.il - on October 29, 2026.
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