A new price war among gasoline stations and an expected huge drop in fuel prices next week have driven down the price at the pump by about 5% following months of increases.
The recent decline in the price of crude oil from around $70 to about $62 a barrel is expected to lead to an unprecedented 8% drop next week, when the government adjusts the monthly maximum allowable price of fuel.
Sonol gasoline stations began the price war this week with an offer to drivers to pump gas during evening and early morning hours at a discount of up to 31 agorot (seven cents) a liter. Paz quickly followed with a discount of 32 agorot.
Sadash, a smaller chain of stations, heated up the price war Thursday by adding one more agorah to the discount and offering it all day and night, cutting the price for benzine to 5.90 shekels a liter ($4.83 per U.S. gallon).
Analysts said one of the reasons for the price war is sinking demand as drivers begin to leave their cars at home and buy less fuel.
Another reason is the race by companies to beat next week's expected drop in fuel prices. Barring any sudden surge in crude oil prices, the price at the pump will drop November 1 to about 5.62 shekels a liter, with a further discount of 15 agorot at most self-service stations.
The decrease also will help put the lid in inflation and keep this year's rate well within the projected maximum target of three percent.
The recent decline in the price of crude oil from around $70 to about $62 a barrel is expected to lead to an unprecedented 8% drop next week, when the government adjusts the monthly maximum allowable price of fuel.
Sonol gasoline stations began the price war this week with an offer to drivers to pump gas during evening and early morning hours at a discount of up to 31 agorot (seven cents) a liter. Paz quickly followed with a discount of 32 agorot.
Sadash, a smaller chain of stations, heated up the price war Thursday by adding one more agorah to the discount and offering it all day and night, cutting the price for benzine to 5.90 shekels a liter ($4.83 per U.S. gallon).
Analysts said one of the reasons for the price war is sinking demand as drivers begin to leave their cars at home and buy less fuel.
Another reason is the race by companies to beat next week's expected drop in fuel prices. Barring any sudden surge in crude oil prices, the price at the pump will drop November 1 to about 5.62 shekels a liter, with a further discount of 15 agorot at most self-service stations.
The decrease also will help put the lid in inflation and keep this year's rate well within the projected maximum target of three percent.