Higher oil prices and the stronger shekel will boost the price of gasoline to NIS 7.45 per liter in December.
Energy markets sources believe that the price of self-service 95 octane gasoline will rise by at least NIS 0.13 per liter at midnight Saturday, November 30. The price hike comes after sharp reductions in the price for October and November.
The reason for the pending price hike is the rise in spot prices for oil in the Mediterranean basin, despite the drop in prices in futures contracts for oil in the past two weeks. An additional factor is the strengthening of the shekel against the dollar in November. As a result, the price of gasoline is set to rise from NIS 7.32 per liter to NIS 7.45 per liter.
If the price of oil falls today and tomorrow, following the Iran agreement, it could reduce the pending price hike of gasoline. The price is based on the average price in the last five trading days of the month.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2013
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