Fuel Prices in Israel Hit Record High, Exceeding 2012 Peak
Translated & summarized from Ynet by baba
The price of gasoline in Israel has reached an all-time high of 8.25 shekels per liter, surpassing the previous record from 2012. The increase is attributed to global fuel prices, currency fluctuations, and tax adjustments, with the government having previously subsidized fuel taxes but recently removed the subsidy.
The story in 5 lines · by baba
- Israeli gasoline prices hit a record 8.25 shekels per liter.
- This price surpasses the previous all-time high from September 2012.
- Global fuel prices and currency exchange rates contributed to the increase.
- Tax adjustments and marketing margin changes also raised the price.
- Previous fuel tax subsidies were recently removed by the finance minister.
The price of a liter of 95-octane gasoline in Israel will reach a record high of 8.25 shekels starting midnight between Monday and Tuesday. This represents an increase of 16 agorot from the August price of 8.09 shekels. The surcharge for full service will also rise by one agora to 26 agorot per liter. This new price surpasses the previous all-time high set in September 2012.
Bat Sheva Abuhazira, director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, explained that several factors contributed to the rise. The international gasoline price increased by approximately 6%, while the dollar exchange rate decreased by about 3%. These combined factors led to an increase of roughly 10 agorot per liter. Additionally, the Tax Authority updated the fuel excise tax component based on the consumer price index, adding about 5 agorot per liter. A semi-annual adjustment to the marketing margin also increased the price by one agora.
The formula for determining the monthly fuel price is based on the dollar exchange rate and Mediterranean oil prices. The previous record of 8.25 shekels per liter was set in September 2012. At that time, Prime Minister Benjamin Netanyahu first proposed reducing fuel taxes to lower prices amid public anger following the 2011 social justice protests. The fuel tax reduction was later reinstated by Finance Minister Avigdor Lieberman in the summer of 2022 when prices again crossed the 8-shekel mark, prompting government intervention. This fuel tax subsidy was removed at the beginning of 2024 by current Finance Minister Bezalel Smotrich, partly due to the growing deficit caused by the ongoing war.
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