Gasoline price could rise NIS 0.60 per liter

The price of self-service 95 octane gasoline could hit NIS 8.25 per liter on September 1.

16 August 12 15:19, Amiram Barkat

The price of self-service 95 octane gasoline could hit NIS 8.25 per liter on September 1, if the price of oil and the shekel-dollar exchange rate stay at their current levels. This price indicates a hike of almost NIS 0.60 per liter from the current price of NIS 7.70 per liter, of which NIS 0.50 per liter is because of the price of oil, and NIS 0.08 is because of the 1% VAT hike.

The price of gasoline is based on the average quotes of CIF La Vera trade prices for fuels in the Mediterranean basin, which are then converted from dollars into shekels (39% of the retail price), excise (39%), the fuel companies' marketing margin (8%), and VAT (14%). The oil component is calculated from the La Vera average trade price on the last four trading days of the month. Disruptions in North Sea oil deliveries have raised the price of crude oil in international markets.

The current price of gasoline is just NIS 0.09 per liter below the all-time high set by the government in April. The price of full-service gasoline reached NIS 8 per liter in April, when the temporary cut in excise by Prime Minister Benjamin Netanyahu kept the price from exceeding this level. Since then, the difference between self-service and full-service gasoline has been cut from NIS 0.21 per liter to NIS 0.14 per liter.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012