As oil prices climb on the world market, energy sources in Israel say that the price of a liter of 95-octane gasoline at self-service pumps in Israel could rise NIS 0.06 to NIS 6.58 on May 1. This would be the third consecutive month that fuel prices have risen in Israel after falling sharply to their lowest level in five years in February.
On global markets, the price of a barrel of West Texas Intermediate (WTI) has reached a three-month high of $56.30 and a barrel of Brent crude is selling for $63, a six week high. Prices are influenced by growing demand, dwindling supply, Middle East tensions.
The price of gasoline fell by NIS 0.63 per liter at the beginning of January, by NIS 0.15 at the beginning of December, and by NIS 0.27 at the beginning of November, due to the decline in the price of oil on world markets.
The price of fuel in Israel is set according to the price in the last four days of the month at Lavera in France. But the international gasoline price represents only 35% of the final pump price in Israel. The second component is excise, comprising 41% of the eventual price. The fuel stations' selling margin accounts for about 9% more, and VAT of 18% on these three components makes up the rest.
Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2015
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