Israel Fuel Prices Set for Significant Jump Next Week

The price of gasoline in Israel is expected to increase by more than 40 agorot per liter with the October price update, marking one of the sharpest rises recently. This increase will push the maximum price for a liter of 95-octane gasoline at self-service stations to notably high levels, significantly impacting transportation costs for households and businesses.

For the average driver, this is not a minor change but a noticeable financial addition with each visit to the gas station. Filling a standard 50-liter tank with this price hike translates to an immediate increase of over 20 to 25 shekels per refueling. Families with two vehicles, high-mileage drivers, and professionals relying on work vehicles could face cumulative monthly increases of hundreds of shekels.

The final and exact consumer price will be officially determined and announced by the Ministry of Energy and Infrastructure in the coming days, after factoring in trading data as stipulated by law. However, forecasts clearly indicate a rising trend. Beyond the direct impact on private vehicle owners, a substantial increase in transportation costs could trigger a wave of indirect price hikes across the economy for services and goods dependent on logistics and delivery.

In the previous month, Finance Minister Bezalel Smotrich intervened in fuel prices by temporarily reducing the excise tax. After the price of 95-octane gasoline surged to 8.25 shekels per liter in early September, Smotrich signed an order that reduced the excise tax by 50 agorot per liter, bringing the maximum self-service price down to 7.75 shekels. This order was set as an interim measure until October 31, meaning the tax reduction continues to apply to the upcoming update. However, the projected increase of over 40 agorot stems from changes in other components influencing the price.