Israel Gas Prices May Hit Record 9 Shekels Per Liter Post-Election
Translated & summarized from NEWSru Israel by baba
Gasoline prices in Israel may approach a record 9 shekels per liter by November 1 if Finance Minister Bezalel Smotrich does not extend a temporary fuel tax reduction. The current price is 7.77 shekels, but the concession expires October 31. Rising global oil prices and a strengthening dollar could further increase costs. Economists warn of potential inflation increases if prices surge.
The story in 5 lines · by baba
- Israeli gasoline prices could reach 9 shekels per liter by November 1.
- The potential price hike depends on Finance Minister Bezalel Smotrich extending a fuel tax reduction.
- The current tax concession expires on October 31, shortly after the Knesset elections.
- Global oil prices have risen to about $110 per barrel, contributing to the potential increase.
- Economists warn of potential inflation rises if fuel prices surge significantly.
Gasoline prices in Israel could surge to nearly 9 shekels per liter by November 1, approaching a record high. This potential increase hinges on whether Finance Minister Bezalel Smotrich decides to extend a temporary fuel tax reduction. The current price for a liter of 95-octane gasoline with self-service is 7.77 shekels. In early October, Smotrich increased the tax concession from 50 agorot to one shekel per liter, a measure set to expire on October 31, shortly after the Knesset elections. If the concession is not renewed, the price will automatically rise to 8.77 shekels. Further increases of 10-20 agorot, driven by rising global oil prices and a strengthening dollar, could push the cost to around 9 shekels. Global oil prices have climbed to approximately $110 per barrel recently, partly due to the crisis in the Strait of Hormuz, which previously led to record fuel prices in Israel in September and October, prompting the tax reduction. The existing tax breaks are costing the state budget nearly 500 million shekels, with an extension for November estimated to cost an additional 300 million shekels. The professional leadership within the Ministry of Finance opposes extending the measure due to a lack of funding sources. Economists warn that a sharp fuel price hike could trigger a broader increase in the prices of goods and services, potentially raising inflation by about half a percentage point in November. The Ministry of Finance has stated that Smotrich has not yet decided on extending the tax concession, with a decision expected after the elections, taking into account global oil market conditions and currency exchange rates.
