Israel Gas Prices Hit Record High After Tax Cut Offset
Translated & summarized from Vesty by baba
Gasoline prices in Israel will reach a record high of 8.27 shekels per liter on October 1st, surpassing the previous record set in 2012. The increase is attributed to rising international fuel costs and a stronger dollar, effectively canceling out a recent tax reduction.
The story in 5 lines · by baba
- Israeli gasoline prices will reach a record 8.27 shekels per liter on October 1st.
- The price hike negates a recent 0.5 shekel reduction in excise tax.
- Rising international fuel costs and a stronger dollar are cited as reasons for the increase.
- The previous record price was 8.25 shekels per liter in September 2012.
- Fuel prices are adjusted monthly based on a set formula.
Gasoline prices in Israel are set to reach a new record high starting Thursday, October 1st, with the price of 95-octane fuel at self-service stations increasing by 52 agorot to 8.27 shekels per liter. This surpasses the previous record of 8.25 shekels set in September 2012. The price increase effectively negates a recent 0.5 shekel reduction in excise tax on gasoline, which was approved by Finance Minister Bezalel Smotrich.
Bat-Sheva Abuhatzira, head of the Ministry of Energy and Infrastructure's oil and gas department, attributed the price hike to two main factors: a roughly 13% rise in international gasoline prices and a 3% strengthening of the U.S. dollar against the shekel. Analysts had predicted an increase of 25-40 agorot, but the actual rise exceeded 50 agorot.
In Eilat, where Value Added Tax (VAT) is not applied, the maximum price for 95-octane gasoline will be 7.01 shekels per liter, an increase of 0.44 shekels from September. The cost for attendant services will be 26 agorot per liter nationwide and 22 agorot in Eilat.
Fuel prices in Israel are adjusted monthly based on a formula that considers average Mediterranean gasoline prices, the dollar exchange rate, distribution costs, and taxes. The price had previously exceeded 8 shekels in the summer of 2022, prompting the government to temporarily reduce excise taxes.
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