Gas Prices to Drop 13.5% Saturday Night

Price drop relects steep fall in world oil prices in October.

Gasoline prices will drop at midnight Saturday by 13.5%, reflecting the steep fall in world oil prices in October. The new price for 95-octane gas will be NIS 5.49 a liter, down 13.54%, for self service. Last month prices fell about 5%. This returns gas prices back to where they were in March 2007, and is down 21.5% from the August 2008 high when a liter cost NIS 7.

Oil prices have fallen from a $147 per barrel high in the summer to $65 yesterday.

The price drop would have been even larger were it not for the recovery of the dollar against the shekel in the past few weeks, which offset part of the fall in oil prices.

Diesel fuel prices will also fall, though they are no longer under supervision by the Infrastructures Ministry, as is gas, but instead are set by the fuel companies. This is the fifth month in a row diesel prices have fallen, 34% in total. Heating fuel prices have dropped 47% in the same period.