Person filling car gas tank 370 .
Opposition politicians accused Prime Minister Binyamin Netanyahu and Finance
Minister Yuval Steinitz on Saturday of hiding the truth from the public about
the weekend’s hike in gas prices.
“Netanyahu and Steinitz’s statement
that they are not involved in the rising price of gas is a lie,” Labor Party
chairwoman Shelly Yacimovich said. “They are involved, and one-third of the
increase is a direct result of unjust taxes on the public.”
pointed to value-added tax and excise tax as “unjust concepts” and “unequal
taxes, because rich and poor people pay the same.”
“The rise in VAT and
gas prices are not surprising. All basic products have become luxuries under
Netanyahu’s government – food, a home, education and gas,” the Labor leader
The maximum price of self-service 95-octane gasoline rose 55 agorot
to a record-high NIS 8.25 per liter for September. This included a o n e - p e r
c e n t a g e - p o i n t increase in VAT at midnight on Friday, from 16 percent
Yacimovich also accused Netanyahu of harming the middle class
because the Finance Ministry plans to increase taxes on the use of leased
“This will hit hundreds of thousands of people where it hurts,
because their leased car is a poor alternative to real, secure employment,” she
MK Yohanan Plesner (Kadima) said Netanyahu is putting his hands in
the public’s pockets in order to fund his “twisted priorities.”
Netanyahu government pays for housing for settlers in Migron [a West Bank
outpost whose residents are to be evacuated] that is worth NIS 660,000 per
family, and invests hundreds of thousands of shekels in each family in the city
of Harish [a community in Wadi Ara that is expand], and presents the check to
the public that serves [in the army] and works, and that starting tonight will
have to absorb another blow,” Plesner said.
Last week, Kadima Party
chairman Shaul Mofaz called the price hike the prime minister’s Rosh Hashana
gift to Israeli citizens, and predicted it would lead to a wave of inflation and
cause thousands to lose their jobs.
A 14% rise in the cost of oil and the
continued depreciation of the shekel against the dollar both contributed to the
price increase. The previous record price motorists paid for a liter of
self-service gasoline was NIS 7.79 – or NIS 8 with full-service fee – in
The price of gasoline is set by the Energy and Water Ministry each
month according to the following components: the cost of oil (NIS 3.42 per liter
in September), excise tax (NIS 2.99), marketing margins (NIS 0.64), as well as
17% VAT on the three aforementioned components.
In addition, there is a
full-service fee of NIS 0.17, which brings the total price per liter to NIS
Nadav Shemer contributed to this report.
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