In Israel, gasoline price to reach record 8.27 shekels per liter — Jerusalem Post

In Israel, the price of gasoline will rise by 52 agorot per liter at midnight between Wednesday and Thursday, reaching a record 8.27 shekels. This is equivalent to $10.17 per gallon, The Jerusalem Post reports.

The new price will exceed the previous maximum of 8.25 shekels per liter. The increase comes amid a roughly 13% rise in gasoline prices worldwide, driven by higher crude oil prices, concerns over supply chain disruptions, and the vulnerability of the global energy market.

Impact of the dollar exchange rate

An additional factor was the strengthening of the US dollar by about 3% against the shekel. This also affected retail fuel prices in the country.

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Less than a month before the new increase, Israeli Finance Minister Bezalel Smotrich, after obtaining the necessary approvals, signed a temporary reduction in the fuel excise tax. It was intended to prevent a sharp increase of about 60 agorot per liter; following the tax adjustment, the gasoline price was reduced to 7.75 shekels per liter.

Tax relief remains in effect until the end of October

The temporary reduction in the excise tax is to remain in effect until October 31. The current price increase is occurring even before this deadline: rising global oil prices have already largely offset the savings for drivers from the tax relief.

If the excise tax reduction is not extended, gasoline may rise in price again in November, depending on global oil prices and the dollar-to-shekel exchange rate.