Gas Prices to Fall Nearly Half a Shekel

YERUSHALAYIM -
An Israeli gas station. (Danielle Shitrit/Flash90)

Gasoline prices are set to take a major hit – downwards. Beginning midnight Motzoei Shabbos, the cost of a liter of gas is expected to fall by 47 agurot. The lower price is due to a sharp fall in the price of oil on the world market in recent weeks.

The new price of a liter of 95 octane gas is expected to be NIS 6.01 ($5.99/gallon). That represents a 22 percent drop in the cost of gas compared to its current, pre-December price.

With that, taxes on gas will not change, and will continue to add 65 percent to the price of a liter of gas. Out of the retail price of gas, nearly NIS 4 goes to taxes. 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 are constantly going up; 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 on this most ubiquitous of “sin taxes.”