Fuel Prices to Rise in Israel Starting September 1

The maximum price for a liter of 95-octane unleaded gasoline in Israel will increase by 16 agorot, reaching 8.25 shekels per liter for self-service stations starting September 1. This announcement was made by the Fuel and Gas Administration at the Ministry of Energy and Infrastructure.

For full-service stations, the additional charge will rise by 1 agora to 26 agorot per liter. In Eilat, where value-added tax is not applied, the maximum price for a liter of 95-octane unleaded gasoline will increase by 14 agorot to 6.99 shekels per liter for self-service. The surcharge for full service in Eilat will also increase by 1 agora to 22 agorot per liter.

Bat-Sheva Abuhazira, head of the Fuel and Gas Administration, explained that several factors contributed to the price hike. A 6% increase in international gasoline prices was partially offset by a 3% decrease in the dollar's exchange rate, resulting in a net increase of approximately 10 agorot per liter due to these global market fluctuations. Additionally, the Tax Authority updated the excise tax component based on the index, adding about 5 agorot per liter. A semi-annual adjustment to the marketing margin also contributed an additional agora.

These combined changes account for the total 16-agora increase per liter for September. The rise in the full-service surcharge is also linked to an update based on the minimum wage, increasing it from 25 to 26 agorot per liter.