Israeli refiner Paz says products markets will be hit by government’s August 2016 decision to introduce tax breaks for operators of trucks and buses to encourage them to switch to running on compressed natural gas (CNG).

Rising domestic demand from power generators is also increasingly being met with natural gas received from the 800mn cfd Tamar gas field, Israel’s sole producing field in the offshore Mediterranean (see map, p3). The field’s capacity was raised to 1.2bn...