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Gas Prices Spike to All-Time High

If you're a motorist in Israel, better fill up the tank while you can. Prices at the pump are set to rise to an all-time high this weekend.
By Chana Ya'ar
First Publish: 8/27/2012, 8:48 PM

Made in Israel?
Made in Israel?
srael news photo: Flash 90

If you're a motorist in Israel, better fill up the tank while you can. Prices at the pump are set to rise again, this time to an all-time high.

The price of gasoline is set to skyrocket at midnight Friday, hitting NIS 8.26 per liter – about $7.80 per gallon at the current foreign currency exchange rate.

It's an all-time record high in Israel, representing a jump of 56 agorot per liter for 95-octane gasoline. The previous Israeli record, NIS 7.79 per liter, was set last April.

Israel has the third highest price in the world for gasoline and the situation is unlikely to improve in the near future, according to a Bloomberg survey earlier this month. Norway topped the "Bloomberg Ranking", at $10.19 per gallon in the second quarter, followed by Turkey, at $9.41% per gallon. Israel came in at third place, with the $9.28 per gallon of premium gasoline.

"The average daily income in Israel is $87, and it takes 11% of an average day's wages to buy a gallon of gas," Bloomberg reported.

Oil prices may rise even higher in the coming months, according to analysts who eyed Tropical Storm Isaac this week as headed for the Gulf of Mexico. The storm, which meteorologists said was likely to become a hurricane in the Gulf of Mexico by Tuesday, could send the price of oil futures still higher. 

The United States gets much of its oil in that region – and Israel buys some of its oil from the spot market there as well. Any damage to oil rigs in the Gulf, plus political tensions in the Middle East, could send prices at the pumps in Israel skyrocketing this winter.