Parking Prices Surge Across Israeli Cities Following Minute-Based Billing Reform

A consumer reform intended to create fairer parking fees by charging drivers per minute instead of full hours has instead led to unprecedented price hikes nationwide. The "Parking Law," which amended the Traffic Ordinance and took effect in December 2025, aimed to end the practice of charging full hours for a few minutes over the limit. Initiated by MK Naama Lazimi, the law sought to enforce precise per-minute billing from the start. However, parking lot operators responded by significantly raising the per-minute rates, some reaching 50-60 agorot per minute, turning longer stays into costly expenses.

Exclusive data from Pango for 2025 and 2026 reveals the full extent of the price increases across Israel. Rishon Lezion experienced the sharpest rise, with parking fees jumping 30.2% in one year, raising the average hourly rate from 8.54 to 11.12 shekels. Bnei Brak remains the most expensive city for parking, with an average hourly rate of 18.85 shekels, up 19.1%, attributed to its dense business activity and high demand for daily parking. Other major cities like Haifa and Petah Tikva saw increases of about 15.5%, while Tel Aviv-Jaffa’s prices rose by 11%, though average parking duration there slightly decreased by 3.2%.

Netanya stands out as the only city where parking prices dropped by 7.2%, leading to an 18.3% increase in average parking duration. However, street parking fees in Netanya rose by 11.7%. Ashdod and Beersheba showed moderate increases of 17% and 1.4%, respectively, with Ashdod offering the cheapest street parking at 3.66 shekels per hour. The new pricing model prompted drivers to shorten their parking time, with seven of nine cities showing a clear decline in average parking duration.

Public backlash against the law was swift, with reports of private parking lots and malls, such as TLV Mall in Tel Aviv, raising prices by up to 50%. In heated Knesset Economic Committee discussions led by MK David Bitan, parking company managers admitted to average price hikes of 20% or more to offset economic losses. MK Lazimi accused parking operators of exploiting a social law to impose drastic price increases, while the Finance Ministry labeled the law "stupid." Seven months after implementation, the committee approved repealing the law, returning to the previous billing system of full hours and quarter-hour increments.

If the repeal passes the Knesset plenum, parking fees will revert, but no price caps exist, so prices may not return to previous levels. Pango’s marketing VP Adi Hangbi noted that regulatory changes directly affect driving and parking habits. Meanwhile, Israeli drivers continue to bear the financial burden, paying minute by minute as the government and parking operators negotiate the future.