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Gas Prices Soar to 7.30 Shekels a Liter

Gasoline prices hit all-time high despite tax cuts as battles rage in Libya.
By Maayana Miskin
First Publish: 2/27/2011, 8:25 PM / Last Update: 2/27/2011, 8:59 PM

Flash 90

Battles in Libya have caused gasoline prices to rise in Israel despite recent tax cuts. The cost of gas is now at  an all-time high of 7.30 shekels per liter in most of the country, and 6.31 shekels per liter in Eilat.

In late January the price of gas rose to what was then the all-time high: 7.26 shekels a liter.

Prime Minister Binyamin Netanyahu lowered the price less than two weeks later, after the Histadrut Labor Union threatened a strike over rising prices. However, the price rose again due to political instability in the Arab world, which has seen dictators overthrown in Tunisia and Egypt.

In Libya, dictator Muammar Qaddafi has threatened to blow up oil facilities. Qaddafi is clinging to power despite a popular uprising, but is expected to be overthrown in the near future.

Saudi Arabia has indicated a willingness to increase its own oil production in order to make up for reduced supplies from Libya.

The uprising in Egypt is expected to affect prices in Israel as well. Disruptions in the supply of natural gas could leave Israelis paying up to 20% more for electricity.