Fuel prices will rise tonight for the eighth month in a row: a liter will cost NIS 7.94

As the cancellation of the fuel tax discount continues to reverberate across Israel, consumers are feeling the pinch at the pump. The Fuel and Gas Administration at the Ministry of Energy and Infrastructure has announced significant updates to fuel prices, effective at midnight between Sunday and Monday, April 1, 2024.

For consumers at self-service stations, the maximum price for a liter of unleaded 95 octane gasoline, including VAT, will rise to 7.72 shekels per liter, marking a substantial increase of 21 shekels from the previous update. The supplement for full service will remain unchanged at 22 shekels per liter.

In Eilat, prices will also see a notable uptick, with the maximum price per liter of unleaded 95 octane gasoline at self-service stations reaching 6.60 shekels, excluding VAT—an increase of 18 shekels from the previous update. The supplement for full service will remain steady at 19 shekels per liter.

The cumulative increase in fuel prices since the cancellation of the tax discount on January 1 now stands at 78 cents—a significant burden for consumers already grappling with rising costs. This marks the fourth consecutive increase in prices as the government refrains from renewing the fuel tax subsidy.

The impact of these price hikes extends beyond the pump, with projections suggesting a 0.1%-0.2% contribution to the April index. Moreover, the ripple effects may soon be felt in other utility bills, potentially leading to increases in electricity prices and the cost of water come July.

As Israeli households brace for the economic fallout of escalating fuel prices, concerns mount over the broader implications for inflation and the cost of living. With no immediate relief in sight, consumers are left to navigate a landscape of increasing financial strain.