Gasoline prices are set to fall in the monthly reiteration of maximum prices gas stations can charge. The Energy Ministry said that prices would fall 6 agurot per liter beginning at midnight Thursday. The new maximum price for a liter of 95 octane gas will be NIS 6.12 ($6.63/gallon). That follows a fall of 11 agurot for a liter of gasoline at the beginning of October. The reason for the decrease: a softening of the cost of oil as supplies rebound after a major refinery fire 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 clubs and others). 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 gasoline 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%.