Person filling car gas tank 370 .
(photo credit: Thinkstock/Imagebank)
The maximum price of self-service 95- octane gasoline will rise 55 agorot to a
record-high NIS 8.25 per liter in September, the Energy and Water Ministry
announced on Thursday.
Motorists will absorb the blow in two stages: At
midnight on Friday, the price will change from the current NIS 7.70 to NIS 7.77
as value-added tax increases from 16 percent to 17%; the following night it will
reach NIS 8.25, in accordance with the ministry’s instructions.
rise in the cost of oil and the continued depreciation of the shekel against the
dollar both contributed to the 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 April this year.
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
In addition, there is a full-service fee of NIS 0.17, which
brings the total price per liter to NIS 8.42.
Opposition leader Shaul
Mofaz (Kadima) issued a statement in which he labeled the price increase “the
prime minister’s gift to Israeli citizens for Rosh Hashana.”
the increase would lead to a wave of uncontrollable inflation, causing thousands
of people to lose their jobs.
According to a Bloomberg survey of 60
countries published this month, Israel has the third-highest gasoline price in
the world, after Norway and Turkey.
“Surrounded by oil producers in the
Middle East, Israel itself drills very little.
Gasoline prices are
controlled by the government, and taxes typically make up about half the cost of
a gallon,” the survey said.
“Gas prices have led to widespread discontent
and political demonstrations over the cost of living. Prime Minister Binyamin
Netanyahu has intervened to prevent prices from rising with the global price of
oil, most recently when he lowered prices 2.9% on June 1, according to the
Energy and Water Ministry.”