Israeli gas prices will rise to NIS 8.08 ($2.35) per liter this week, the Energy Ministry announced on Wednesday, setting the price near the record high of NIS 8.25 per liter from September 2012.
At midnight Thursday, the price of gas for the month of July will go up by 36 agorot (10 cents) per liter for self-service. The additional surcharge for having gas pumped by an attendant will remain at 21 agorot per liter.
The price of gas is determined by the exchange rate between the US dollar and the Israeli shekel as well as the price of a barrel of oil. Standard gas prices across the country are set at the end of each month.
Israel excise tax rates on gas also play a role in setting the price of gasoline. The tariff has been reduced by half a shekel through the end of July.
Last week, Finance Minister Avigdor Liberman announced his ministry’s intention to lower the tax by one shekel through the end of October, but has not commented on the matter since. Over half of the Israeli price per liter is taxes.
For the month of June, the cost of gas was NIS 7.72/liter ($8.52 per gallon) in self-service stations, a 66 agorot ($0.19) rise from the previous month.
Oil prices spiked at $122.11 per barrel on June 8 — the highest price since March 8 — and have since dropped to approximately $110 as of Tuesday morning. This change is likely due to the release of US oil reserves and a rise in oil production in countries including the US and Libya.
The dollar has also risen in relation to the shekel over the past month and is now worth NIS 3.42.
On May 29, when the Finance Ministry released gas pricing for the month of June, one US dollar equaled NIS 3.34, and oil stood at approximately $115 per barrel.
Global inflation has caused the price of consumer goods to rise dramatically, and the Russian invasion of Ukraine in late February has exacerbated pricing further. Russia, one of the world’s natural gas exporters, has been barred from the US and UK markets, and EU member countries have vowed to phase out their reliance on Russian oil.
China has bought record-high quantities of oil from Russia, at lower rates than Western countries, lowering the average price per barrel.