Breaking News: Fuel Prices Set to Increase Amidst Uncertainty
As the clock strikes midnight tonight, a significant hike in fuel prices is set to take effect, marking the end of a period of stability brought about by a previous excise order that resulted in price subsidies. The announcement of the impending price increase, which amounts to a 28 cents per liter jump, came late in the evening after the Ministry of Energy and Infrastructure failed to receive an update from the Treasury regarding the future of the existing order.
The order, which had been implemented in April 2022 by then Minister of Finance Avigdor Lieberman, had resulted in an immediate reduction of half a shekel per liter by lowering the excise tax. However, with Finance Minister Smotrich choosing not to extend the order, the door was left wide open for the price increase.
Effective January 1, the maximum price for a liter of self-service unleaded 95 octane gasoline will soar to NIS 7.22 – a substantial increase of 28 shekels from the previous rate. In Eilat, the price will increase by NIS 6.17 per liter.
The sudden rise in fuel prices is expected to have widespread effects across various sectors of the economy and is likely to hit consumers hard. As concerns grow regarding the impact of the price hike, many are left questioning the government’s decision and its potential repercussions for the public and businesses alike.