Fuel Prices Set for Another Jump in October
Fuel prices in Israel are expected to rise again in October, with energy sector assessments predicting an increase of at least 40 agorot per liter, potentially pushing the self-service price of gasoline to around 8.15 shekels. This anticipated hike follows a previous increase of 16 agorot in September, which brought the price to 8.25 shekels per liter before a tax reduction.
In response to the September price surge, Finance Minister Bezalel Smotrich signed an order reducing excise tax on fuel by 50 agorot, lowering the consumer price to 7.75 shekels per liter. This measure faced criticism, with some labeling it 'election economics,' though it received approval from the Finance Ministry's legal counsel.
The previous price increase was attributed to a combination of factors. Bat Sheva Abuhazira, director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, explained that a global oil price increase of approximately 6% was partially offset by a 3% weakening of the dollar, contributing about 10 agorot to the price. An update to the excise tax component by the Tax Authority, linked to an index, added another 5 agorot, and a semi-annual adjustment to the marketing margin contributed an additional agora, totaling the 16 agorot increase seen last month.
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