Israel gasoline price rises to record 8.25 shekels per liter

Starting midnight Monday, the price of 95-octane gasoline in Israel rose by 16 agorot to 8.25 shekels per liter, matching the all-time high first recorded in 2012. The surcharge for full-service fueling also increased by one agora to 26 agorot per liter. Bat-Sheva Abuhatzira, head of the Fuel and Gas Administration at the Energy and Infrastructure Ministry, attributed the rise primarily to a 6% increase in international gasoline prices. While a 3% decline in the dollar exchange rate partially offset this, it still resulted in a net increase of about 10 agorot per liter. Additionally, the Tax Authority adjusted the excise tax, adding 5 agorot per liter, while a semiannual update to marketing margins added another agora. The full-service surcharge increase was linked to the rise in Israel’s minimum wage. Israel’s fuel pricing formula is based on the dollar exchange rate and Mediterranean petroleum-product prices. The fuel-tax subsidy, which had been reinstated in 2022 to curb rising costs, was abolished by Finance Minister Bezalel Smotrich at the start of 2024 due to the widening budget deficit following the war.