The price of a barrel of oil has fallen 7% over the past month and the Ministry of Finance is making a second NIS 0.50 per liter cut in excise.
Gasoline prices in Israel will fall sharply on Sunday night at midnight August 1, 2022. The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will fall from NIS 8.08 per liter to NIS 7, and even lower. In one fell swoop, the price of a tank of gasoline for the average car in Israel will fall by NIS 50.
The sharp fall is for two reasons. Firstly, the price of a barrel of oil has fallen 7% over the past month. Secondly, Minister of Finance Avigdor Liberman has announced that excise on a liter of gasoline will be cut by NIS 0.50, temporarily until the end of August. In April excise was cut by NIS 0.50 per liter so that during August drivers will benefit from a NIS 1 per liter cut on excise.
The cut in excise was only approved after Liberman was able to convince the Attorney General that this is not about election economics but rather alleviating the price rise in oil since the Russia-Ukraine war began.
Ministry of Finance officials were also not eager to cut excise at a time when oil prices have begun to fall after US president Joe Biden visited Saudi Arabia earlier this month and persuaded them to increase oil production. But Liberman prevailed and the excise cuts will cost the state coffers an estimated NIS 354 million in August.
Published by Globes, Israel business news – en.globes.co.il – on July 28 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
Gasoline Credit: Shutterstock
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