Speculations on increased gas prices in light of recent Middle east regional unrest have come to fruition, and gas prices in Israel will rise by four-percent Monday at midnight, hitting an all-time high.
95 octane gasoline prices will increase by 28 agurot per liter, reaching 7.3 NIS per liter.
Gasoline prices have risen worldwide, with the increase accounting for 36 percent of the final consumer price. The spike in cost per barrel is largely due to the political instability that has recently overtaken the Middle East as well as speculation, that has led to a 10.86-percent overall rise in gasoline prices (nine cents per liter).
The NIS-to-dollar exchange rate has dropped by roughly one-percent, and factoring this in with the international increase in prices and V.A.T. all adds up to an additional 28 agorot per liter. The gasoline price increase has prompted a decrease in the Israeli tax component at retail price from 56-percent to 53.4-percent.
The Ministry of Infrastructure has announced that as a result of this sharp increase in prices, the ministry is considering postponing its upcoming periodic update of the marginal amount gas retailers can profit off of gasoline prices, which is changed every six months.
This margin is calculated based on the European market and the Ministry of Infrastructure is currently reexamining the amount in will allow retailers to profit off of gasoline sales.
The matter will be brought to an inter-office prices committee next month, in which a decision is expected to be made.