Gas Prices Edge Downward 1.67 Percent

An Israeli gas station. (Danielle Shitrit/Flash90)

After several months in which gas prices climbed in response to higher oil prices around the world, Israeli drivers will get a break, as prices are slashed by 11 agurot, 1.67-percent less than prices were in June. The price change will take place on Motzoei Shabbos at midnight.

The new price of a liter of 95 octane gas is expected to be NIS 6.49, down from approximately NIS 6.60, its current rate. In dollar terms, that works out to $6.75 a gallon

The taxes on gas will not change, and will continue to add 65 percent to the price of a liter of gas. That is one of the highest levels of taxation anywhere. In fact, the only countries that tax fuel more harshly are Holland, Italy, Finland and Greece.

As if that weren’t enough, taxes were on a constant increase; four years ago, total taxes on gas were 45 percent of the cost of a liter, while today they are 65 percent. The state earns an annual NIS 14 billion from this most ubiquitous of “sin taxes.”

Compared to the rest of the world, Israel is in fifth place among the countries of the world in terms of how expensive gas is in dollar terms. Norway is the champion when it comes to high gas prices, followed by the Scandinavian countries. The average Israeli driver spends about NIS 900 per month on gas, about 11 percent of his monthly income, according to the Central Bureau of Statistics.