Israeli gasoline prices to equal 2012 record after new increase
The maximum government-regulated price for a liter of self-service 95-octane unleaded gasoline will increase by 16 agorot to 8.25 shekels
Gasoline prices in Israel will rise again overnight Monday into Tuesday, bringing the cost of the most commonly used fuel to its highest recorded level in nearly 14 years.
The maximum government-regulated price for a liter of self-service 95-octane unleaded gasoline will increase by 16 agorot to 8.25 shekels, including value-added tax, the Ministry of Energy and Infrastructure’s Fuel and Gas Administration announced Sunday.
The new rate will equal the record set in September 2012, increasing pressure on motorists already facing elevated transportation and living costs.
Drivers who use full-service pumps will pay an additional 26 agorot per liter, up from the current 25-agorot surcharge. At a full-service station, the total regulated price will therefore reach 8.51 shekels per liter.
Bat-Sheva Abuhatzira, director of the Fuel and Gas Administration, attributed the increase to a combination of higher international gasoline prices, taxation changes and an updated marketing margin.
Global gasoline prices climbed by approximately 6% during the past month. The effect on Israeli consumers was partly softened by a roughly 3% decline in the value of the dollar, which reduced the local cost of fuel purchased on international markets.
Together, movements in the global gasoline market and the exchange rate added about 10 agorot to the price of each liter.
An inflation-linked adjustment to Israel’s fuel excise tax contributed another five agorot. The semiannual revision of the margin paid to fuel-marketing companies added a further one agora, bringing the total increase to 16 agorot.
The one-agora rise in the full-service surcharge was attributed in part to higher labor expenses following an increase in the minimum wage.
Israel updates its regulated gasoline price each month using several components, including international fuel costs, currency movements, taxes and marketing expenses. Although the weaker dollar provided some relief this month, it was not enough to offset the increase in global prices and domestic charges.