For the first time since 2023, fuel prices are set to drop below 7 shekels per liter, according to a report by KAN News.
The Fuel and Gas Administration at the Ministry of Energy announced that the new prices will take effect tomorrow night, January 1, 2026, reflecting a 26-agorot decrease from the previous update.
This marks the first time in the past two years that the price of gasoline has fallen below 7 shekels per liter.
KAN news reported that the maximum price for a liter of 95 octane unleaded gasoline at self-service stations will be capped at 6.85 shekels per liter, including VAT, a 26-agorot reduction from the last price set.
The surcharge for full service will remain unchanged at 25 agorot per liter, also including VAT.
The Ministry of Energy comments
Bat sheva Abuhatzira, the director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, stated, “This significant decline is a result of approximately an 11% drop in international gasoline prices in the Mediterranean region.”
She added, “This decrease is attributed to several factors, including an oversupply of distillates in the international market, reduced gasoline demand, and a decline in the geopolitical risk premium. Additionally, there has been a weakening of the dollar exchange rate by about 2%.”