Israel Fuel Prices Plummet as Excise Tax Reduced

Fuel prices in Israel have seen a significant drop, with the maximum price for a liter of 95-octane unleaded gasoline at self-service stations now capped at NIS 7.75, including VAT. This represents a decrease of 50 agorot from the previous price.

The reduction is attributed to a change in the excise tax on gasoline, implemented at midnight between Sunday and Monday. The price in Eilat, which is exempt from VAT, has also been adjusted, with the maximum price per liter of 95-octane unleaded gasoline at self-service stations now NIS 6.57, a drop of 42 agorot.

Charges for full-service stations remain unchanged, with an additional 26 agorot per liter (including VAT) nationwide and 22 agorot per liter (excluding VAT) in Eilat.

This price decrease follows a recent increase of 16 agorot, which had raised the price to NIS 8.25 per liter. That prior hike was caused by a roughly 6% rise in international gasoline prices, a periodic excise tax adjustment based on an index, and increased marketing margins and full-service fees due to minimum wage hikes.

However, the Ministry of Finance, with approval from the Attorney General, unusually adjusted the excise tax, leading to the substantial price drop for drivers. The Ministry of Energy advises consumers to compare prices across different stations to find the most economical option.