Gasoline prices in Israel to rise for fifth straight month

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This is the fifth straight month that gasoline prices have risen by an accumulative NIS 0.90 per liter since the start of the year.

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The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel in May will rise by NIS 0.18 per liter on Tuesday at midnight, to NIS 7.90 per liter, the Ministry of Energy and Infrastructure has announced.

This is the fifth straight month that gasoline prices have risen by an accumulative NIS 0.90 per liter since the start of the year. The new price of gasoline will be the highest since NIS 8.08 in July 2022 due to the Russia-Ukraine war.

In addition to the rising price of oil on world markets and volatility in the shekel-dollar exchange rate, an additional reason for the price rise has been the decision by Minister of Finance Bezalel Smotrich to restore the previous full level of excise tax on fuel.

Between April 2022 and the end of 2023, the Ministry of Finance reduced excise by varying amounts to keep price controlled 95 octane gasoline stable at just below NIS 7 per liter. As part of the cuts to the revised 2024 state budget, it was decided to cancel the excise reduction, which last year cost the state coffers more than NIS 1 billion in lost revenue.

Published by Globes, Israel business news – en.globes.co.il – on April 30, 2024.