The Limited Times

Due to the deficit: The Ministry of Finance will not fully finance the increase in prices, and the price of gasoline will rise | Israel Hayom

8/30/2023, 6:12:29 AM

Highlights: The price of gasoline is expected to rise overnight between Thursday and Friday by about 10 agorot per liter. The increase derives from the depreciation of the shekel and an increase in the price of crude oil. Unlike in the past, the Ministry of Finance decided not to cover the full increase in prices from the state coffers. The final price will be set by the ministry of Energy and will be published later on Wednesday. It should be noted that since March, the reduction in the tax on gasoline has hardly changed.


The customs tariff order published tonight indicates that the price of gasoline is expected to increase by about 10 agorot per liter • The increase derives from the depreciation of the shekel and an increase in the price of crude oil • Unlike in the past, the Ministry of Finance decided not to cover the full increase in prices from the state coffers due to the increase in the deficit

The price of gasoline is expected to rise overnight between Thursday and Friday by about 10 agos per liter and to 6.96 agos per liter of 95-octane gasoline. This is according to the customs tariff order published tonight (between Tuesday and Wednesday) for public comments. The final price will be set by the Ministry of Energy and will be published later on Wednesday.

It should be noted that since March, the price of gasoline has hardly changed, thanks to the reduction in the tax on gasoline – a reduction that costs the state coffers hundreds of millions of shekels a month.

Alongside Levin: Netanyahu declared at the cabinet meeting - "the cost of living is a national priority" (archive) // GPO

The reason for the current increase in the price of CERN is the Ministry of Finance's decision not to cover the full increase resulting from the depreciation of the shekel and the increase in the price of crude oil. This is due to the increase in the deficit in the state coffers and a decrease in tax collection.

Since April 2022, temporary provisions have been in place continuously reducing the purchase tax applicable to gasoline, in order to reduce its price to the consumer against the background of the increases in its price components.

In accordance with these temporary provisions, in August 2023 there was a reduction in the purchase tax on gasoline, leading to the price of a liter of gasoline being 89 agorot lower than its price without the temporary order.

In the published order, it was proposed that from September 1, 2023 to September 30, 2023, there will be a reduction of 100 agorot in the price of a liter of gasoline to the consumer, which, as stated, was enough to prevent only part of the expected increase in prices.

Wrong? We'll fix it! If you find a mistake in the article, please share with us

Similar news: