Gas prices are set to fall in the monthly reiteration of maximum prices gas stations can charge. The Energy Ministry said that prices would fall 7 agurot per liter at midnight Motzoei Shabbos. The new maximum price for a liter of 95 octane gas will be NIS 5.92 ($6.50/gallon). That follows a fall of 15 agurot for a liter of gas at the beginning of February. The reason for the decrease: a softening of the cost of oil, officials said.
According to the ministry, the two-month decline translates into an average monthly savings of NIS 45 per month on average for drivers. In the past 10 months, gas prices have fallen by 59 agurot, translating into a NIS 29.50 savings per fill-up, or NIS 133 per month.
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, or the like). 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%.