Parking Prices Surge Across Israel Following New Per-Minute Billing Law

A reform intended to reduce parking costs by charging drivers per minute of use has instead led to widespread price increases in parking lots nationwide, according to data from Pango for 2025 and 2026 obtained by Channel 12 News. The "Parking Law," which took effect in December 2025, aimed to prevent drivers from paying for a full hour or quarter-hour when exceeding their parking time by only a few minutes. However, many parking lot owners raised their per-minute rates, resulting in higher total fees for longer stays.

The city of Rishon Lezion experienced the sharpest price hike, with parking rates rising 30.2% within one year, from 8.54 to 11.12 shekels per hour. Bnei Brak emerged as the most expensive city among those surveyed, with an average parking rate of 18.85 shekels per hour, marking a 19.1% increase compared to the previous year. Other major cities also saw significant increases: Haifa and Petah Tikva rose by about 15.5%, Tel Aviv-Yafo by approximately 11%, and Ashdod by 17%. Beersheba remained relatively stable with a modest 1.4% increase.

Netanya was the only city to report a decrease in parking prices, dropping 7.2%, although the average parking duration there increased by 18.3%. Notably, street parking rates in Netanya surged by 11.7%. The price hikes have influenced driver behavior, with seven out of nine cities showing a decline in average parking duration, particularly in Haifa and Ashdod.

In response to public outcry, the Knesset's Economic Committee has approved the law's repeal in its second and third readings. If finalized, parking fees will revert to the previous system of paying for the first full hour and then in quarter-hour increments. However, without a cap on maximum prices, parking lot owners may maintain the higher rates even after the billing method returns to the old model. Meanwhile, drivers continue to face increased costs, turning a consumer-friendly initiative into another example of regulatory measures that ultimately burden the public.