The threat of a possible imminent US attack on Syria come at the worst possible moment for the Israeli consumer - just days before the Ministry of Energy and Water Resources sets the price of gasoline for September. The price of self-service 95-octane gasoline could rise to NIS 7.80 per liter, or even higher, at midnight Saturday.
The price of gasoline was expected to rise by NIS 0.10 per liter, of which NIS 0.06 was due to the periodic update in the excise, which is linked to the Consumer Price Index (CPI). However, even before reports about the use of chemical weapons in Syria, the CIF La Vera trade price for fuels in the Mediterranean basin, which accounts for 40% of the retail price of gasoline in Israel, had jumped.
Last week's chemical attack in Syria sent the forecast of the price hike up to NIS 0.15 per liter. Today, the Ministry of Energy and the fuel companies revised their price hike forecast following the jump in the shekel-dollar exchange rate, which rose 1.35%, compared with yesterday's representative rate, to NIS 3.612/$, which will add another NIS 0.05 per liter to the gasoline price hike.
The CIF La Vera price is the average price in the five final trading days of the month, and there are still time left in August for the price to rise further. The pending update will bring the price of gasoline in Israel closer to its peak of NIS 8.25 per liter, reached in September 2012. The current price of NIS 7.60 per liter is NIS 0.17 per liter higher than in July; the rise in CIF La Vera trade prices was responsible for the increase.
Published by Globes [online], Israel business news - www.globes-online.com - on August 27, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013