The maximum price of 95 octane gasoline at self-service pumps in Israel will fall by 3.32% or NIS 0.19 per liter, from NIS 5.73 to NIS 5.54 on Monday at midnight, March 1, the Ministry of National Infrastructure, Energy and Water Resources reports. There will be no change to the NIS 0.19 charge for receiving full-service at pumps from gas station attendants.
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 and by NIS 0.04 per liter at the beginning of February.
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 will total 70% of the price at the pumps after the latest fall.
In Eilat, where there is no VAT, the maximum price of 95 octane gasoline at self-service pumps in Israel will fall by NIS 0.16 per liter (3.27%), to NIS 4.74 on Monday at midnight.
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 February 28, 2016
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