Gasoline prices unchanged despite sharp fall in oil prices

Despite the sharp fall in oil prices over the past month, the maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will remain unchanged in October at NIS 6.37 per liter, the Ministry of National Infrastructures, Energy and Water Resources has announced. The charge for receiving full-service at pumps from gas station attendants will remain NIS 0.21.

The lower oil prices are not being passed onto the consumer because of the Israel Tax Authority decree that offsets some of the NIS 0.89 excise tax reduction introduced last month against falling fuel prices. The excise reduction, which will be cut to NIS 0.76 in October, is in effect only for October and November. The offset mechanism was designed to justify out of a desire to prevent the appearance of "election bribery" during an election period, when a transitional government is in office.

Economists have recently revised downwards the forecast for oil prices in the coming quarter, however the accelerated depreciation of the shekel against the dollar may offset future declines in fuel prices in Israel.

Published by Globes, Israel business news - en.globes.co.il - on September 29, 2022.