Fuel Price Surge and Dairy Product Hikes: concerning Impact on Consumer Expenses

Following the conclusion of Passover, Israeli households are bracing for a series of price increases across various sectors, likely to significantly impact expenses. Among the notable increases, the price of fuel is set to surge to NIS 7.90 per liter on Wednesday, while supervised dairy products are expected to become up to 5% more expensive. Additionally, a range of popular products including Milka, Oreo, Gomigam, Crunch, Tampax, Heinz, Kellogg's, Fairey, Sud, Ariel, and Persil are also expected to see price hikes.

Immediate and Gradual Increases:
Some price increases, such as those for supervised dairy products, will take effect immediately due to their fresh nature. Other products will become more expensive gradually as existing stock is depleted. The acceptance of these price increases by marketing chains and consumers will ultimately determine their full impact.

Impact on Dairy Products:
Supervised milk products are set to see price increases ranging from 4.2% to 5.4%, attributed in part to the postponement of the state's debts to dairy farms. Despite minimal increases in raw milk prices, consumers can expect higher prices for various dairy products starting immediately.

Butter Price Surge:
The increase in dairy product prices pales in comparison to the surge in butter prices since its removal from supervision in 2020. Today, most imported butters are priced at NIS 13.90 or more, marking a significant increase from previous years.

Company Announcements:
Import and distribution company Diplomat has announced price increases of 3%-4% on average, with some products seeing hikes of up to 15%, effective from May. Similarly, Nestlé Ice Cream (Fruneri) will raise prices by up to 7.55% on select products due to rising raw material costs, particularly cocoa.

Consumer Impact:
The price increases extend beyond dairy products, with sausage and pastrami company Yachiam announcing a 9% price hike on all products. This increase, effective immediately, is attributed to sharp rises in raw material prices, particularly beef and turkey.

Continued Fuel Price Increases:
Adding to the financial burden, fuel prices have risen for the fifth consecutive month, with gasoline now priced at NIS 7.90 per liter as of midnight.