Fuel prices set to spike drastically in Israel

This is the latest in a series of fuel-price spikes, this increase constituting an extra 36 agorot per liter.

Gas prices will be going up once again from NIS 7.72 to NIS 8.08 per liter of 95-grade octane as of July 1, Energy Ministry reported on Wednesday.

This is the latest in a series of fuel-price spikes, this increase constituting an extra 36 agorot per liter.

Gas prices broke an eight-year record high in February when gasoline prices rose alongside prices of oil due to the war in Ukraine. March saw a decrease in oil prices worldwide, but Israel’s gas prices remained unchanged.

Fuel-price spikes are currently being felt worldwide, and Israel is beginning to feel the repercussions.

Tax reduction on fuel – not enough for consumers
The latest recorded spike comes despite the Finance Minister’s announcement on the extension of the “Blue tax” on fuel and diesel, as part of the attempt to “combat” the high cost of living in Israel.

The tax reduction for fuel and diesel by half a shekel will be extended for another six months, until the end of 2022, Finance Minister Avigdor Liberman updated in a Tuesday memo.

The Tax Authority and the Treasury are currently working on extending the tax reduction, which stands at half a NIS per liter, until August 9.

Starting in August 10, a further reduction of another half a shekel will be put in place, reducing gas rates from that date by one shekel until November 15, 2022.