Gasoline prices to exceed NIS 8 threshold

The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel could rise above NIS 8 per liter in April, the Israel Institute of Energy and the Environment, which represents the fuel companies, predicts. The government-controlled price of gasoline, is revised at the beginning of every month, based on data from the end of the previous month, mainly on the price of oil in the Mediterranean, which is currently soaring because of the war.

The price of a barrel of oil, which was about $70 for Brent crude at the end of last month, has surpassed the $100 threshold and is currently $108 – a rise of 55%. At the same time the shekel-dollar exchange rate remains stable at NIS 3.10/$, no change from the end of February.

If these prices persist to the end of March, the Institute estimates that the price of gasoline is expected to cross the NIS 8 per liter mark and reach between 8.02 and 8.05. This is an overall price increase of a full shekel per liter, or about 15%. This is due to an $0.85 increase in the price of fuel itself, and another $0.15 increase in VAT, which is increasing at the same time. This will be the highest level of fuel prices for consumers recorded since in the wake of the Russian invasion of Ukraine, the price of fuel rose to 8.08 shekels per liter in July 2022.

Lior Shmueli, economic advisor to the Israel Institute for Energy and the Environment, stresses that this is a forecast based on current market conditions, and everything could still change by the end of the month. Still, there is currently no reason to assume that the price will drop significantly soon. In fact, if it rises further, the price of fuel may even cross the 2022 record and reach unprecedented prices.

The Ministry of Energy and Infrastructure said, “The ministry does not publish price estimates of fuel prices before publishing the official price. Gasoline prices at gas stations are determined according to the formula established in the Order for Supervision of Prices of Commodities and Services. The calculation is based on the average of fuel prices in the Mediterranean Basin region over five trading days, preceding the last two working days of each month. In addition, the price includes a basket of marketing expenses, excise tax and VAT, with the conversion into shekels being carried out according to the last representative exchange rate published by the Bank of Israel before the last two working days of each month.”

Published by Globes, Israel business news – en.globes.co.il – on March 9, 2026.

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