Egypt Cuts Oil Prices to Israel

Egypt, which supplies Israel with one quarter of its oil, has reduced prices by approximately 25 percent, thus saving the Treasury over $50 million a year.

Effective Monday, Israel will pay $8.75 for a barrel of heavy crude oil, down from $12.10; and $10.75 for light crude, down from $13.25. “A reduction of every dollar in the price of an oil barrel means a savings of $50 million a year,” Energy Minister Moshe Shahal said in a radio interview. He said he hoped the price cut will be passed on to consumers immediately after the Passover holiday.