Gas Prices to Rise After Saudi Refinery Explosion

Gas station. (Danielle Shitrit/Flash90)

Gas prices are set to rise in the monthly reiteration of maximum prices gas stations can charge. The Energy Ministry said Sunday that prices would rise 11 agurot per liter beginning at midnight Tuesday. The new maximum price for a liter of 95 octane gas will be NIS 6.18 ($6.63/gallon). That follows a fall of 18 agurot for a liter of gas at the beginning of September. The reason for the increase: prices rises in the cost of oil in the wake of the major refinery fire earlier in September, officials said.

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%.