Gasoline Prices in Israel Reach Highest Level in 14 Years

Al-Taj News – Gasoline prices in Israel will return tomorrow, Tuesday, to the highest historical level on record, after the Ministry of Energy and Infrastructure approved a new increase that raises the price per liter to 8.25 shekels (about $2.77).

The official Israeli Broadcasting Corporation said that the price of a liter of “95 octane” gasoline for self-service will increase by 16 agorot, from 8.09 to 8.25 shekels, effective from midnight Monday/Tuesday.

The price will thus match the record level reached by gasoline prices in Israel in September 2012, about 14 years ago.

The latest increase comes after a jump of 61 agorot (about 20 cents) per liter between July and August, bringing the total increase to 77 agorot (26 cents) over two months.

Bat-Sheva Abu Hatzira, Director of the Fuel and Gas Administration at the Israeli Ministry of Energy, attributed the increase to a roughly 6% rise in the price of gasoline in global markets, partially offset by an approximately 3% decline in the dollar exchange rate.

In an attempt to halt the increase, Finance Minister Bezalel Smotrich said, according to the Broadcasting Corporation, that his ministry is holding “professional discussions to reduce the fuel tax.”

However, the corporation reported that legal officials expect this step to face difficulties due to the approaching elections.

The increase comes amid the repercussions of the war launched by the United States and Israel against Iran since February 28, 2026, and the subsequent closure of the Strait of Hormuz, one of the most important routes for global oil exports and supply chains.

Washington and Tehran had previously signed a memorandum of understanding on June 18 regarding freedom of navigation, but its implementation stalled due to disputes related to the security of the strait and arrangements for the movement of ships.