Gasoline prices to drop in August

The price of 95 and 96 octane gasoline is set to drop by NIS 0.25 per liter on August 1, thanks to the drop in global oil prices. Sources at fuel companies and refineries predict that the price of self-service 95 octane gasoline will fall 2.8% to NIS 6.80 per liter from the current NIS 7 per liter. The drop in price comes after five continuous months of price hikes. The primary reason that the price of gasoline, which is supervised, is expected to fall is the drop in the price of oil from over $140 per barrel in early July to $125 per barrel.

However, no significant change is expected in the retail price of diesel, which is not supervised, compared with last month. Although the wholesale price of diesel is expected to drop by about 3%, most of this drop will be offset by the shekel's 3.5% depreciation against the dollar. Most fuel companies raised the price of diesel by NIS 0.15-0.20 per liter in mid-July, though many have begun to lower prices back to early July levels.

Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2008