Fuel Prices Rise Again in Israel Following August Surge

The price of a liter of 95-octane gasoline in Israel will increase by 16 agorot starting September 1st, reaching 8.25 shekels for self-service fueling. This follows a significant price jump in August. The Ministry of Energy and Infrastructure announced the new maximum price, which includes value-added tax.

The price hike is attributed to several factors. A primary driver is a roughly 6% increase in international fuel prices. This was partially offset by a 3% decrease in the dollar exchange rate, contributing about 10 agorot to the liter's cost. Additionally, the Tax Authority updated the excise tax component by approximately 5 agorot per liter, based on its indexation.

A semi-annual adjustment also led to a slight increase in the marketing margin, adding another agorah to the price. The total of these changes accounts for the 16-agorot increase per liter for September.

Furthermore, the surcharge for full-service fueling will rise by one agorah to 26 agorot per liter, due to an increase in the minimum wage. The Ministry of Energy and Infrastructure advises consumers to compare prices across different stations to find the most economical option, though it does not provide a specific tool for this comparison.

The ministry calculates the monthly fuel price based on a formula that considers average fuel prices in the Mediterranean region, marketing costs, excise tax, and VAT, using the official exchange rate from the Bank of Israel.