Israel Faces Fuel Price Hike as Government Acknowledges Global Market Influence
Translated & summarized from Calcalist by baba
Israel is set to experience a fuel price increase above 8 shekels per liter due to global market factors, prompting the Netanyahu government to acknowledge external influences. This contrasts with the government's previous criticism of the then-ruling coalition for rising costs, which it attributed solely to government policy.
The story in 5 lines · by baba
- Fuel prices in Israel are projected to rise above 8 shekels per liter starting October 1st.
- The government attributes the increase to global geopolitical events, a stance contrary to its 2022 election rhetoric.
- Critics accuse the current government of politically manipulating fuel prices to benefit its election campaign.
- The article highlights the government's previous blame of the ruling coalition for inflation driven by external factors.
- Government policies cannot control global oil prices, but can influence domestic living costs.
Israel is bracing for a significant increase in fuel prices, with gasoline expected to exceed 8 shekels per liter starting October 1st, barring major geopolitical shifts. This price hike is attributed to global energy market volatility, particularly events in the Strait of Hormuz, which are beyond the Israeli government's direct control. The Netanyahu government is now explaining to the public that external factors significantly influence fuel costs, a stark contrast to its stance four years prior.
During the 2022 election campaign, when Netanyahu's Likud party was in opposition, the then-governing coalition was heavily criticized for rising living costs. Netanyahu promised to lower prices for electricity and fuel, among other measures, blaming the government for inflation. At that time, the explanation of global economic forces impacting Israel was dismissed as politically convenient.
The article highlights the "poetic justice" of the current situation, noting that the same government now facing external price pressures had previously manipulated the narrative for political gain. The global factors cited today, such as the war in Ukraine and its impact on energy and food markets, were also present in 2022 but were downplayed by the opposition.
While acknowledging that governments can influence living costs through policies like opening markets to imports, increasing competition, and reducing unnecessary regulation, the article stresses that they cannot dictate global oil prices or control major shipping routes. The current government's decision to artificially suppress fuel prices below the 8-shekel threshold before the upcoming elections is criticized as a politically motivated move that sacrifices tax revenue and fails to address broader cost-of-living issues.
The expected price increase, potentially exceeding 25 agorot, will largely negate the previous month's 50 agorot fuel tax reduction, leaving the government with lower revenues and drivers paying more. The piece concludes by pointing out the hypocrisy of a government that previously blamed the administration for price hikes due to external factors, only to now use the same explanation when it suits their political agenda.
