Fuel Prices Surge to Record High in Israel

Beginning September 1st at midnight, the price of gasoline in Israel will reach an all-time high of 8.25 shekels per liter for self-service pumps. This matches the previous record set in September 2012. Over the past two months, fuel prices have increased by a cumulative 77 agorot, amounting to approximately 200 shekels per month for an average vehicle.

Of the current 16 agorot increase, 6 agorot are attributed to government decisions. These include linking fuel taxes to the consumer price index three times annually and increasing the fuel companies' marketing margin twice a year. The marketing margin increase boosts company profits, despite a lack of proven justification based on expenses, especially as companies now employ fewer staff due to the shift to self-service.

Employees at adjacent convenience stores are reportedly included in the gasoline tariff calculation, even though these stores generate separate, high profits for energy companies. The government initiated a process in 2022 to revise the pricing formula, but the appointed committee has not yet completed its work. This has led to an automatic, twice-yearly update of the marketing margin based on outdated data, with drivers bearing the cost.

Notably, a widely circulated video of Prime Minister Benjamin Netanyahu from before the previous elections, where he investigated rising fuel prices, was filmed when the price stood at 8.08 shekels, 15 agorot lower than the upcoming record price.