The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel in February will rise by NIS 0.16 per liter on Wednesday at midnight, to NIS 7.38 per liter, the Ministry of Energy and Infrastructure has announced. The charge for receiving full-service at pumps from gas station attendants will remain NIS 0.22.
The new price of gasoline will be the highest since NIS 8.08 in July 2022 due to the Russia-Ukraine war.
The latest price hike follows the rise in the price of oil on world markets and the weakening of the shekel when the price was calculated. Another reason for the price increase has been the decision of Minister of Finance Bezalel Smotrich not to extend the cut in excise tax.
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. As a result, gasoline prices at gas stations jumped in January by NIS 0.28 per liter, to NIS 7.22.
The increase in the price of fuel is part of a wave of price increases in the economy, which includes food products, and electricity tariffs which rise 2.6% on February 1. The increase in the price of electricity will have a knock on effect with other price rises including water.
Published by Globes, Israel business news - en.globes.co.il - on January 30, 2024.
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