The dramatic plunge in oil prices will lead to a further cut in the price of the pump in two weeks if crude oil prices remain under or near the present $80 a barrel level. The cost of gasoline could go down as much as 15 percent when the government adjusts the price ceiling at the end of the month. The OPEC group of oil producing countries has told the International Monetary Fund (IMF) that the current worldwide financial crisis will keep oil prices low.

This month's modest cut in the price at the pump coupled with another reduction in November could return the consumer price index to levels that are within the target range of the Bank of Israel and allow more flexibility in monetary policy.