The price of 95-octane gasoline at Israeli gas stations now stands at 7.80 shekels per liter, down 27 agorot from April.
The surcharge for full-service fueling remains unchanged at 25 agorot per liter, including VAT. In Eilat, where VAT does not apply, the maximum price for self-service 95-octane unleaded gasoline will not exceed 6.61 shekels per liter, down 23 agorot from the previous update. The full-service surcharge in Eilat remains unchanged at 21 agorot per liter.
“The significant decline in the price of gasoline at the pump in June stems from a combination of two factors: a roughly 5% drop in the dollar exchange rate and a roughly 4% decline in the international price of gasoline,” said Bat Sheva Abu-Hatzira, director of the Fuel and Gas Administration at the Energy and Infrastructure Ministry.
“The decline reflects the strengthening of the shekel against the dollar during the month, alongside a drop in the international price of gasoline, which intensified toward the end of the month against the backdrop of progress in talks between the U.S. and Iran,” she said.
The all-time record price for a liter of 95-octane gasoline, 8.25 shekels, was recorded in September 2012. At the time, more than 13 years ago, Prime Minister Benjamin Netanyahu first floated the idea of cutting the fuel tax to lower prices at the pump, amid growing public anger about the cost of living a year after the 2011 social justice protests.
The fuel tax discount was later canceled, but revived by then-finance minister Avigdor Liberman in the summer of 2022, when the price of gasoline again crossed 8 shekels per liter and reached 8.08 shekels. That prompted the government to intervene and lower the tax.
The fuel tax “subsidy” was canceled at the start of 2024 by current Finance Minister Bezalel Smotrich, partly because of the widening deficit caused by the war.