The price of 95-octane gasoline in Israel will rise to 8.25 shekels per liter at midnight between Monday and Tuesday, an increase of 16 agorot from the August price of 8.09 shekels.
The surcharge for full-service fueling will rise by one agora to 26 agorot per liter, including VAT.
(Photo: Alexi J. Rosenfeld/Getty Images)
Bat-Sheva Abuhatzira, head of the Fuel and Gas Administration at the Energy and Infrastructure Ministry, said several factors contributed to the increase.
“One factor was the rise in gasoline prices on the international market, which increased by about 6%,” she said. “This increase was partially offset by a roughly 3% decline in the dollar exchange rate. Overall, changes in international gasoline prices and the dollar exchange rate led to an increase of about 10 agorot per liter.”
The Tax Authority also updated the excise tax component in line with the index as part of a periodic adjustment, adding about 5 agorot per liter. A semiannual update to the marketing margin added another agora.
Together, the changes resulted in the 16-agorot increase for September, Abuhatzira said.
The full-service surcharge will also rise by one agora, from 25 to 26 agorot per liter, following an adjustment linked to the increase in Israel’s minimum wage.
Israel’s monthly fuel-price formula is based in part on the dollar exchange rate and petroleum-product prices in the Mediterranean basin.
The new price matches the all-time record for a liter of 95-octane gasoline, first reached in September 2012.
At the time, amid growing public anger a year after Israel’s 2011 social-justice protests, Prime Minister Benjamin Netanyahu proposed reducing fuel taxes to lower prices at gas stations.
The tax discount was later canceled, before being reinstated by then-Finance Minister Avigdor Liberman in the summer of 2022, when gasoline again climbed above 8 shekels per liter and reached 8.08 shekels.
That fuel-tax subsidy was abolished at the beginning of 2024 by Finance Minister Bezalel Smotrich, in part because of the widening budget deficit following the war.