Fuel prices will drop significantly in Israel on Sunday at midnight

Fuel prices will drop significantly in Israel on Sunday at midnight

Gasoline prices will fall by about NIS 1.50 per liter at the pumps at midnight on Sunday, after rising steadily for the past few months.

On Monday, Israelis are expected to pay an estimated NIS 6.54 per liter of gasoline instead of the NIS 8.08 per liter they had been paying for the whole of July – a record price and one that had been unprecedented in the country since 2012.

The price drop is the result of the fuel excise tax cut, which was first announced by Finance Minister Avigdor Liberman in April, and lower crude oil prices. , whose fall has been constant since the beginning of June around the world.

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Oil prices peaked at $122.11 a barrel on June 8 – the highest price since March 8 – and have since fallen, hitting around $98 a barrel on Sunday.

A change in the price of black gold which is partially driven by the worry of a global recession which could lower the demand for oil in the near future. Among the other reasons justifying this change, the release of oil reserves, in the United States, and an increase in production in various countries, in particular in the United States and in Libya.

But even with this drop in prices, more than half of the price of a liter of gasoline in Israel results from various taxes.

Liberman slashed their tariff by half a shekel per liter in April and the most recent reduction is expected to be the same – meaning taxes will drop by a total of one shekel per litre.

This latest tax rebate, however, is only expected to last a month and prices are expected to rise again by half a shekel per liter at the end of August. The reduction of half a shekel that took place in April will end, for its part, in January 2023.

Finance Minister Avigdor Liberman leading a Yisrael Beytenu faction meeting at the Knesset, May 16, 2022. (Olivier Fitoussi/Flash90)

This drop in prices should provide relief to many Israelis who are currently battling an escalating cost of living.

“There are those people who go to gas stations just before the election, who come accompanied by television crews, and there are those who have gone to work,” Liberman wrote on Twitter Thursday before this relief. planned tax, an apparent reference to opposition leader Benjamin Netanyahu’s visit to a gas station earlier this month, where the politician railed against the high cost of fuel. Elections are scheduled for November 1.

While inflation in the Jewish state has been lower than in other countries of the developed world, the cost of living there has skyrocketed – from the price of food to that of building materials. The country is also grappling with a real estate market whose prices have soared.

Illustrative: People shop at a Rami Levy supermarket in Jerusalem, February 3, 2022. (Yonatan Sindel/Flash90)

The cost of dairy products, subject to government control, increased by 4.9% two weeks ago, and the average price of eggs – also controlled – recently crossed the 6.5% mark for the first ever times since January 2019.

A planned increase in the price of bread has finally been negotiated and it will be more modest, with basic uncut bread increasing by 5%. However, prices should rise by a maximum of 30% by December.

Israel’s electricity company said Wednesday that it had also agreed to a slightly more moderate increase in August – from
8.6% against the 9.6% which had been announced by the Electricity Authority at the beginning of the month.

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