Fuel Prices in Israel May Soar to Over 9 Shekels Per Liter Next Week
Translated & summarized from Maariv by baba
Fuel prices in Israel are projected to rise to approximately 8.04 shekels per liter by Saturday night, with a potential surge above 9 shekels if tax reductions are not extended. The increase is attributed to a strengthening dollar and the expiration of government tax relief measures. Drivers could face significantly higher refueling costs, with a 50-liter fill-up potentially costing an additional 13.5 shekels or more.
The story in 6 lines · by baba
- Fuel prices in Israel may exceed 9 shekels per liter next week.
- The price is expected to reach about 8.04 shekels per liter by Saturday night.
- A strengthening dollar is contributing to the anticipated price hike.
- Government tax reductions, which lowered prices in September and October, may expire.
- Drivers could face an additional 13.5 shekels per 50-liter tank.
- Removing full tax relief could add another 50 shekels to a 50-liter fill-up.
Drivers in Israel are bracing for a significant increase in fuel prices, with the cost per liter potentially exceeding 9 shekels as early as next week. The current price is expected to rise to approximately 8.04 shekels per liter by Saturday night. However, this increase could be just the beginning if the government does not extend existing tax reductions.
According to analyst Fanning, the current exchange rate of the dollar against the shekel is around 3.10 to 3.11, compared to the 3.066 rate used to set the current fuel price. The strengthening dollar makes gasoline more expensive in shekel terms, contributing to upward pressure on prices.
Fanning estimates that this could add about 27 agorot per liter in November, bringing the price to around 8.04 shekels. For a driver filling up 50 liters, this would mean an additional 13.5 shekels per tank. If the government also removes the full tax relief, the increase would be substantially larger, potentially adding another 50 shekels for the same amount of fuel.
The current fuel price reflects two tax reductions implemented in September and October, each lowering the price by 50 agorot. The most recent reduction took effect on October 5, bringing the price down from 8.27 shekels to 7.77 shekels per liter. This indicates that the recent decrease in prices was partly due to the government absorbing some of the cost increase through tax cuts.
