The maximum price of 95 octane gasoline at self-service pumps in Israel will fall by 0.87% or NIS 0.05 per liter, from NIS 5.78 to NIS 5.73 on Sunday at midnight, February 1, the Ministry of National Infrastructures, Energy and Water Resources reports. Only two weeks ago, energy sources in Israel had estimated a more substantial NIS 0.15 fall.
However, a slight recovery in the price of oil over the past week, and the strengthening of the dollar against the shekel, has wiped out much of the anticipated price fall.
Gasoline prices have been falling consistently in Israel for the past two years as oil prices plunge worldwide. The maximum price of 95 octane gasoline at self-service pumps in Israel fell by NIS 0.21 per liter at the beginning of January.
However, heavy taxation on fuel in Israel means that as the price of oil falls more and more, the influence on the price of gasoline becomes less and less, because excise taxation is a fixed amount - NIS 3 per liter - and not dependent on the changing price of oil. If that is not enough of a take for the government, the final price of gasoline also includes 17% VAT. Taxation on gasoline totals 67% of the price at the pumps. With marketing costs the price of a liter of 95 octane is fixed at NIS 4.50 before taking into account the price of oil.
The price of fuel in Israel is set according to the price in the last four days of the month at Lavera in France.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2016
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