The cost of a liter of gas is expected to rise by 55 Agorot this weekend, marking an increase of 7.14%. Once the measure goes into effect, a liter of unleaded 95 octane petrol will cost a whopping NIS 8.25 (roughly $2) at self-service pumps.
The Ministry of Energy and Water Resources said that the price hike is to be implemented in two increments. Early on Saturday, the value-added tax is to be raised, putting the price of a liter of gas at NIS 7.77 ($1.93).
The process is to be completed early on Sunday, September 1, once the other components of the price of gas are updated, including the excise tax and the global price of oil.
A liter of unleaded 95 octane petrol is to cost NIS 7.05 ($1.75) at self-service pumps in Eilat, where such purchases are exempt from VAT, marking a 6.17% increase from the current price.
Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz on Thursday decided against cutting the excise tax on the commodity, a measure that could have mitigated the price hike. The officials cited the State's limited resources as the rationale behind their decision.
Avital Lahav contributed to the report