Israel Raises Gasoline Prices by 61 Agorot to 8.09 Shekels Per Liter Starting Saturday Midnight
Translated & summarized from Ynet by baba
Israel will raise gasoline prices by 61 agorot to 8.09 shekels per liter starting Saturday midnight, following previous price drops. The increase reflects international fuel price trends and the removal of a fuel tax subsidy earlier this year amid budget concerns.
The story in 6 lines · by baba
- Gasoline prices in Israel rise by 61 agorot to 8.09 shekels per liter from Saturday midnight.
- Full-service surcharge remains unchanged at 25 agorot per liter.
- Eilat's price excluding VAT increases by 51 agorot to 6.85 shekels per liter.
- Prices are set monthly based on Mediterranean basin fuel prices and exchange rates.
- Fuel tax subsidy was removed in early 2024 due to budget deficits linked to the war.
- Previous tax cuts were introduced in 2012 and 2022 to ease public discontent over high fuel prices.
Starting at midnight between Saturday and Sunday, gasoline prices in Israel will increase by 61 agorot compared to the previous month. The maximum price for a liter of 95-octane unleaded gasoline at self-service stations will be capped at 8.09 shekels, including VAT. The surcharge for full service remains unchanged at 25 agorot per liter. In Eilat, the price excluding VAT will rise by 51 agorot to 6.85 shekels per liter, with a full-service surcharge of 21 agorot unchanged.
The Ministry of Energy and Infrastructure's Fuel Administration sets monthly fuel prices based on a formula tied to the average Mediterranean basin international fuel prices over five trading days before the last two working days of the previous month. The price includes marketing costs, excise tax, and VAT, converted to shekels using the Bank of Israel's official exchange rate.
The all-time peak price for 95-octane gasoline was 8.25 shekels per liter in September 2012. At that time, Prime Minister Benjamin Netanyahu first proposed reducing fuel taxes to lower prices amid public protests demanding social justice in 2011. Although the tax cut was later canceled, it was reinstated by Finance Minister Avigdor Lieberman in summer 2022 when prices again exceeded 8 shekels per liter, prompting government intervention to reduce taxes.
However, the fuel tax subsidy was removed at the start of 2024 by current Finance Minister Bezalel Smotrich, partly due to the growing budget deficit caused by the ongoing war.
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