Gas prices are set to fall for the second month in a row, making gas cheaper beginning Sunday night than it has been nearly all year. The Energy Ministry said Sunday that prices would fall 12 agurot per liter beginning at midnight. The new maximum price for a liter of 95 octane gas will be NIS 6.25 ($6.63/gallon). That follows a fall of 14 agurot for a liter of gas at the beginning of June. This reduction more than erases a 19 agurot increase in the price of gas at the beginning of May.
Gas prices in Israel are government-controlled, in that a maximum price is set (although many gas stations discount gas for members of their customer club, etc.). The prices are set at the end of the calendar month, and are based on deliberations made by a committee made of representatives of the Economy and Infrastructure Ministries. The price is usually tied to the international price of crude oil, which has shot up in recent weeks.
While the price per liter of gas is high, it should be noted that the actual refined gasoline in a liter of Israeli gas accounts for only 32% of the pump price – with taxes accounting for the other 68%.