Price of gasoline to fall on January 1 to a two-year low
Israelis to pay NIS 6.85 a liter to fill up at start of 2026; despite falling gasoline price, household electricity and gas bills expected to rise as result of increased carbon tax
Add ToI as a Preferred Source on GoogleSharon Wrobel is a tech reporter for The Times of Israel
On January 1, the price of gasoline in Israel will fall below NIS 7 per liter for the first time in two years, the Energy Ministry announced Tuesday.
As of Thursday, Israelis will pay NIS 6.85 ($2.16) per liter of gasoline at the self-service pump, down 3.66 percent, or 26 agorot (about 7 cents) lower than the price in December.
The Energy Ministry attributed the decline to a 11% drop in global gasoline prices in the Mediterranean region, a decrease in demand for gasoline, and a slide in the geopolitical risk premium, as well as changes in the shekel-dollar exchange rate.
“This is a significant [price] decrease,” declared Bat Sheva Abuhatzira, director of the ministry’s fuel authority.
The price of gasoline is determined by the exchange rate between the US dollar and the Israeli shekel as well as the price of a barrel of oil.
Despite the falling price of gasoline, the costs of other fuel sources such as natural gas for cooking and electricity generation are due to climb in the coming year as part of an increased carbon tax approved by the government, which is expected to result in higher bills for households, already hard hit by spiking living costs.
Times of Israel staff contributed to this report.
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