Gas Prices to Remain Virtually Unchanged in August

Gas prices in August are set to remain virtually unchanged from their level in August, with prices to rise by one agura beginning Wednesday night at midnight. That’s good news, however, after prices fell in July, to their lowest levels all year. The new maximum price for a liter of 95 octane gas will be NIS 6.26 ($6.63/gallon). That follows a fall of 14 agorot for a liter of gas at the beginning of June.

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 up 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%.