Gasoline prices will fall by about NIS 0.55-60 per liter at the end of December, energy market sources estimate. The fall follows the 40% plunge in oil prices on world markets in the past few months.
The price of a liter of 95 octane gasoline at self-service pumps is currently NIS 6.90, after falling by NIS 0.15 at the beginning of December, and by NIS 0.27 at the beginning of November. Thus the price of a liter of 95 octane gasoline at self-service pumps in Israel will be about NIS 6.30 from January 1. Fuel prices in Israel are now at their lowest for more than four years.
However, the price of oil on global markets is not responsible for 100% of the price at Israeli pumps. The price of oil on the Lavera international oil market in France, four days before the start of a new month, is responsible for only 35% for the price set on the first of each month. The biggest component in the price is the excise imposed by the Ministry of Finance, which comprises 41% of the price we pay for gasoline, diesel and other fuels.
The marketing margin contributes 9% to the price and VAT a further 15%.
Published by Globes [online], Israel business news - www.globes-online.com - on December 14, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014