Gas prices drop 9%; public transport tax up 8%

Since late July, global oil prices have dropped to between $50 and $70 per barrel, from a peak of $147, as a result of the global financial crisis.

filling gas 88 (photo credit: )
filling gas 88
(photo credit: )
The price of filling your gas tank dropped by 9 percent Sunday night at midnight amid a rapid decline in global oil prices over the past two months. "The fall in oil prices worldwide has lowered prices at oil refineries, which in turn have led to a significant drop of 9% in the price of gas at the station," said Chen Bar-Yosef, head of the gas division at the National Infrastructures Ministry. The price for self-service 96 octane gasoline will fall 9.07% to NIS 5.01 per liter, from NIS 5.51. The extra fee for full-service remains unchanged at NIS 0.13 per liter. In November, gas prices fell 13% to an 18-month low. The price of gasoline, set by the government each month, is calculated by averaging international oil prices and the value of the shekel against the dollar during the last week of each month. Since late July, global oil prices have dropped to between $50 and $70 per barrel, from a peak of $147, as a result of the global financial crisis. Since July 1, when gasoline prices soared to a record NIS 7 per liter for self-service 95 octane gasoline and caused a public uproar, prices have come down 28%. In August, gasoline prices went down for the first time in five months, by 4.71%, on cooling global oil prices. Other gas products, which are not price-regulated, are also expected to benefit from the sharp fall in global oil prices. The price of diesel fuel is estimated to drop by about 90 agorot, to between NIS 6.5 and NIS 7 per liter. Separately the Knesset Interministerial Price Committee decided on Sunday to raise the taxes for public transportation by 8% in January 2009, instead of the 12% that had been proposed. According to reports, Transportation Minister Shaul Mofaz opposed the move, arguing for the rates to remain unchanged. Jerusalem Post staff contributed to this report.