Gasoline prices are set to fall for the first time in 2024, bringing relief to consumers at the pumps. The Ministry of Energy and Infrastructure has announced that starting from June 2, the price of government price-controlled 95 octane gasoline at self-service pumps in Israel will decrease by NIS 0.38 per liter, reaching NIS 7.52 per liter.
This reduction comes after five consecutive months of price increases, marking a significant change for motorists. The drop in gasoline prices can be attributed to the recent decrease in the value of the US dollar against the shekel, coupled with a slight moderation in global oil prices. Since December 2023, the price of 95 octane gasoline in Israel has climbed by NIS 0.96, rising from NIS 6.94 to NIS 7.90 at the beginning of this month.
Despite the upcoming price decrease in June, consumers will not return to the price levels seen between April 2022 and the end of 2023. During that period, the Ministry of Finance implemented excise reductions to maintain the price of controlled 95 octane gasoline just below NIS 7 per liter. However, as part of the adjustments made to the revised 2024 state budget, the decision was made to cancel the excise reduction, which had cost the state over NIS 1 billion in lost revenue last year.
While the drop in gasoline prices is welcome news for consumers, it highlights the complex dynamics of fuel pricing influenced by global economic factors. The fluctuating value of currencies and oil prices continue to play a significant role in determining the cost of gasoline for consumers around the world.
