The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will fall sharply on Tuesday at midnight July 1, 2026, by NIS 0.32 per liter to NIS 7.48 per liter, the Ministry of Energy and Infrastructure has announced. The charge for service at pumps in Eilat will remain NIS 0.25 per liter.

This is still a high price in historic terms but well below the record NIS 8.07 per liter in May 2026, which was close to the highest ever gasoline prices in Israel in 2012. The fall in price reflects lower oil prices on international markets but the decline has been moderated by the weakening of the shekel against the dollar to back above NIS 3/$.

The price in Eilat (where there is no VAT) will fall by NIS 0.27 per liter to NIS 6.34 per liter. The charge for service at pumps in Eilat will remain NIS 0.21 per liter.

The global oil price has fallen dramatically following the opening of the Strait of Hormuz. Despite the exchange of fire between the US and Iran, the assumption is that ships will be able to continue to leave (albeit only gradually), which has reduced the price of a barrel of Brent oil to $72. This is a price similar to that recorded on the eve of the war in late February, although still above the price at the beginning of the year, which was only about $60 per barrel of Brent. On the other hand, the dollar exchange rate, which reached a low of only NIS 2.8/$ in late May, has now risen back to NIS 3/$.

Ministry of Energy and Infrastructure Fuel Authority managing director Bat Sheva Abuhatzira says, "The price of gasoline at gas stations is falling this month by NIS 0.32 per liter from the previous update - the most significant monthly decrease in the last three months. In total, since May the price of gasoline has fallen by NIS 0.59 per liter.

"The main reason for the decline this month is the weakening of oil prices in international markets, due to a decrease in the risk premium in energy markets and the fading of some of the concerns about disruptions in global oil supplies. As a result, the price of international oil fell by about 16%. On the other hand, the strengthening of the dollar by about 6% against the shekel acted in the opposite direction and slightly limited the scope of the discount for the consumer. The Ministry of Energy and Infrastructure once again reminds the public to compare prices between gas stations and choose the most affordable station."

The price of gasoline at gas stations in Israel is calculated by the Ministry of Energy towards the end of each month, based on the average fuel prices in the Mediterranean region and the shekel-dollar exchange rate. In addition, the price includes margins for marketing expenses for the gas station, excise tax and VAT.

Published by Globes, Israel business news - en.globes.co.il - on June 28, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.