Energy market sources believe that the July 2011 price of gasoline, controlled by the government, will be cut by NIS 0.25 per liter, because of the drop in the price of crude oil.
Saudi Arabia boosted its output by 200,000 barrels a day, and the International Energy Agency (IEA) released 60 million barrels from Western countries' strategic reserves. The price of a barrel of oil fell 11% in the past month to $91 per barrel.
The price of gasoline is based on the average quotes of CIF La Vera trade prices for fuels in the Mediterranean basin, which are then converted from dollars into shekels. The La Vera trade price accounts for 39% of the retail price of gasoline in Israel, excise accounts for 38%, the fuel companies' marketing margin accounts for 9%, VAT is 14%, and leakage, insurance, and inventory operational maintenance is 1%.
The price of self-service 95 octane gasoline peaked at NIS 7.62 per liter in May. The Ministry of National Infrastructures cut the price to NIS 7.46 on June 1.
Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2011
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