After the sharp jump in August: fuel price in Israel reaches an all-time high
The price of a liter of 95-octane gasoline at self-service pumps is jumping by 16 agorot and will stand at 8.25 shekels in September — identical to the record set 14 years ago. The reasons: a jump in fuel prices in the international market and an update to the excise tax.
The Fuel and Gas Administration at the Ministry of Energy and Infrastructure announces today (Sunday) that at midnight between Monday and Tuesday, September 1, the prices of controlled fuel products sold to consumers at gas stations will be updated. The maximum price per liter of 95-octane unleaded gasoline for the consumer at a self-service station (including VAT) will not exceed 8.25 shekels per liter, an increase of 16 agorot from the previous update.
This price is the highest ever set in Israel according to Ministry of Energy data, and is identical to the record set 14 years ago in September 2012. The surcharge for full service is also increasing by one agora, and will stand at 26 agorot per liter, including VAT.
The Director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, Bat-Sheva Abuchatzira, stated that several factors influenced the price increase this month, primarily the rise in the price of gasoline in the international market by about 6%. This increase was partially offset by a decrease of about 3% in the dollar exchange rate. In total, the changes in the international gasoline price and the dollar exchange rate led to an increase of about 10 agorot per liter. In addition, the Tax Authority updated the excise component in accordance with the index (periodic update), which caused an increase of about 5 agorot per liter. Also, a semi-annual update was carried out and the marketing margin increased by one agora. All these changes led to a total increase of 16 agorot per liter in September.
Another periodic update caused the surcharge for full service to rise by one agora, following the increase in the minimum wage, and it will stand at 26 agorot per liter, instead of 25 agorot currently. The Ministry of Energy and Infrastructure recommends comparing prices and choosing the most cost-effective station for the consumer, although it does not provide a way to do so.
The Fuel Administration at the Ministry of Energy and Infrastructure publishes at the end of each month the price of 95 gasoline at the station for the next month, in accordance with the formula established in the Order for the Control of Prices of Commodities and Services. According to the order, the price of gasoline at the station is based on the average fuel prices in the Mediterranean basin during the five trading days preceding the last two working days of the previous month. In addition, the price includes a basket of marketing expenses, excise tax, and value-added tax. The conversion to shekels is carried out according to the last representative exchange rate published by the Bank of Israel before the last two working days of the previous month.
