Economy

Israel's Fuel Prices Hit All-Time High as Oil Costs Surge

Despite a weaker dollar, rising crude oil prices driven by Persian Gulf tensions will push gasoline to 8.25 shekels per liter starting September 1

Gila Isaacson

AUG 30, 2026 10:08

2 min read

Israeli consumers face another financial blow as the Ministry of Energy and Infrastructure announced fuel price increases for September, driven primarily by escalating tensions in the Persian Gulf region.

Starting at midnight between Tuesday and Wednesday (September 1), regulated fuel prices at gas stations will be updated. The maximum price for a liter of 95-octane unleaded gasoline will rise by 16 agorot to reach 8.25 shekels per liter, the highest price ever recorded in Israel.

Full-service fees will stand at 26 agorot per liter (including VAT), an increase of 1 agora from the previous update. In Eilat, where VAT does not apply, the maximum price per liter will be 6.99 shekels, up 14 agorot from the last adjustment.

The price increase stems from rising global oil costs, fueled by heightened tensions between the United States and Iran and concerns over the closure of the Strait of Hormuz. These factors have driven crude oil prices up by 6.4%. The impact was partially offset by a 2.95% decline in the dollar exchange rate against the shekel.

Of the 8.25-shekel price per liter of gasoline, Israeli consumers pay 3.66 shekels in fuel tax (known as "blue tax") and an additional 1.26 shekels in VAT, totaling 4.62 shekels per liter, or 59% of the final price, in government taxes.

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