311_offshore oil well.
(photo credit: Associated Press)
The upheaval in Libya and the Arab world in general is pushing up the global
price of oil, and will result in another hike in the price of gasoline in
Currently calculations indicate that the price of 95 octane
gasoline will rise by at least NIS 0.17 per liter at midnight on February 28 –
The calculation is based on the current price of a barrel of
oil. Assuming that the rise in the price of oil continues over the next few
days, the price of fuel next month could be even higher.
Today is the
first day of the trading days at the end of the month for calculating the
government-controlled price of gasoline in Israel.
The price of gasoline
is based on the average quotes of CIF La Vera trade prices for fuels in the
Mediterranean basin, which are then converted from dollars into shekels. The
shekel’s weakness against the dollar in the past few days will also contribute
to higher prices at the pump.
The formula for calculating the price of
gasoline is as follows: 32 percent is the La Vera trade price, 43% is the
excise, 14% is VAT, and 10% in the fuel companies’ marketing margin.
NIS 0.12 per liter price hike for gasoline on February 1 was also mainly due to
the rise in the price of oil and the shekel-dollar exchange rate. In addition,
on January 1, the government raised the excise on gasoline. Taken together, the
price of 95 self-service gasoline rose over three months from NIS 6.71 per liter
to NIS 7.26. However, the price fell back earlier this month to NIS 7.04 per
liter when the government canceled the excise hike following public discontent.