The maximum price of 95 octane gasoline at self-service pumps in Israel is expected to fall by about NIS 0.08 per liter, from NIS 5.96 to NIS 5.88 on December 1.
This will be the fifth-straight month that prices will have fallen, and the lowest price since 2009. High taxation keeps the price relatively high for drivers with 66% of the amount paid for fuel going to the government.
The reason for the fall is a more than 12% drop in the price of oil on world markets since the start of the month. This follows last week's International Energy Agency report forecasting that oil prices will continue falling, in particular because of a surplus of over 3 billion barrels due to over-production by the OPEC cartel. Oil prices have fallen 8% over the past week, and 45% since the start of the year. A barrel of Brent crude is trading today at $44.80 and WTI is $41.
The price of fuel in Israel is set according to the price in the last four days of the month at Lavera in France.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2015
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