Jerusalem Raises Municipal Parking Fees by 22% Amid Rising Costs and Infrastructure Work

The Jerusalem Municipality has increased parking fees in city-operated lots managed by Eden Company by approximately 22%, effective Tuesday. In the city center, parking rates rose from 18 to 22 shekels, while other areas saw prices increase from 12 to 15 shekels. The only exception is the Talpiot area, where the fee remains at 12 shekels to accommodate visitors and workers during ongoing extensive infrastructure and development projects.

Jerusalem residents continue to benefit from the "Yerushalmi" discount, which grants a 20% reduction on municipal parking fees, but this discount now applies to the higher prices. According to the municipality, the price hike aims to regulate demand in central areas, encourage public transportation use, especially the light rail, and address rising operational costs while maintaining resident benefits.

This increase follows a similar 20% hike in Tel Aviv's municipal parking fees for non-residents announced about two weeks ago. Both hikes come in the wake of a controversial parking law enacted in December 2023, which shifted parking pricing to a per-minute basis from the first minute. The law has been widely criticized and was expected to be repealed before the Knesset dissolved, but the repeal was postponed due to opposition linked to metropolitan authority legislation, particularly from ultra-Orthodox parties concerned about Sabbath public transport.

With the government committed to repealing the law, many parking operators initially held off on raising prices, but recent data indicates patience has run out, leading to significant price increases and higher costs for drivers.