Gasoline prices in Israel are expected to drop by about 5%, or 30 to 45 agorot a liter, on Tuesday (April 2).
Maximum retail gasoline prices are set by the government and are generally adjusted effective at the beginning of the following month based on prevailing gasoline prices in Europe. Wholesale European gasoline prices dropped by 10% over the pastmonth, which is the major factor in the downward adjustment for April, but the shekel also strengthened by about 2%, making world oil prices cheaper in shekel terms.
The maximum price for self-serve regular unleaded gasoline, as set by the Energy and Water Resources Ministry, is currently NIS 7.95 per liter. The April price could be affected by fluctuations over the next few days. It will be officially set on Friday.
Because April 1 is a holy day (the seventh day of Passover ), the new price will take effect at midnight between Monday and Tuesday rather than the day before.
Since the beginning of the year, retail gasoline prices have increased by 5.7%, or 43 agorot a liter. The price hike was the result of higher wholesale fuel prices in Europe, caused in part by threats to oil supplies from rebel activity in North Africa, where insurgents have been fighting the Algerian and French armies.
The maximum retail price for gasoline in March is the second highest in Israel's history in nominal terms, topped only by last September, when the price per liter of self-serve unleaded hit NIS 8.25.