Following sharp increases in fuel prices in Israel since the beginning of the year, relief is finally expected for Israeli consumers. According to recent forecasts, fuel prices are going to drop significantly this coming Saturday evening, for the first time in a long time.
The new fuel price will be published by the Ministry of Energy at the end of the week, but since June 1 falls on a Saturday, it will be updated at the gas stations only on the night between June 1 and 2, Saturday night. According to the early estimates, this is a decrease of 30-50 cents to the price of the final liter at the gas stations.
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This, after a steep increase of almost NIS since the cancellation of the fuel tax discount in December 2023. For example, while in December the price of Octane 95 in self-service was only NIS 6.94, this month, May, it already reaches NIS 7.90, and in full service even to NIS 8.12.
The key factor for the expected price drop is the combination of a drop in crude oil prices in the international markets, alongside the strengthening of the shekel against the dollar. This feature allows the fuel companies in Israel to reduce their rates.
A significant drop in fuel prices will help a lot in the fight against the cost of living and the inflationary pressures flooding the economy. According to economists, the increase in fuel prices since December contributed about 0.4% to inflation in the economy.
However, a source in the energy industry pointed out that the drop in prices may only be temporary, in view of the expected increase in demand for fuel in the summer months, and also due to the security uncertainty in the region and the continued incidents with the Houthis in the Straits of Hormuz.
Recently it was even proposed by economic factors, including Energy Minister Eli Cohen, to renew the fuel tax subsidy by the government as a step in the fight against inflation. Undoubtedly, the good news about the upcoming drop in prices brings a cool breeze and a wave of optimism, at least temporarily, to households in Israel.
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Working in the eyes, everything over NIS 2 is the same
Jupiter
05/2024/27
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1Our loss is in our pocket
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