The wave of price increases in the economy continues:
According to estimates, the price of gasoline is expected to jump by about 50 agorot per liter, an increase of about 7%, and will stand from June 1 at about NIS 7.5 per liter - a record of eight years.
The expected price increase is due to the rise in oil prices against the background of the war between Russia and Ukraine and the rise in the dollar exchange rate.
It is important to note that these are currently estimates and the final price will be announced by the Ministry of Energy next week.
Recall that currently 53% of the price of fuel are taxes levied by the government (excise tax and VAT) - this is a high tax rate compared to most developed countries.
Although the price of fuel is automatically updated according to the price of oil, the dollar exchange rate and other components, the government has the ability to influence.
About a month and a half ago, the government voluntarily reduced the price of fuel by half a shekel per liter, as part of plans to reduce the cost of living.
The price of fuel has a dramatic effect on the cost of living in the economy - because it affects both household expenses and business expenses.
The price of fuel affects public transportation prices, flight prices, transportation costs, including that of retail chains and more.
The electricity tariff may also increase by 10%
The electricity tariff could also increase by 10%, Israel Today has learned.
The main reason for the apparent rise in prices is the rise in coal prices resulting from the prolonged war between Russia and Ukraine.
Although the electricity tariff is announced at the beginning of the year, abnormal fluctuations in fuel costs (above 5.5%) require the Electricity Authority to make updates during the year as well.
It should be noted that the final decision has not yet been made and the Electricity Authority is currently discussing the issue.
Hadera Power Station,
According to data from the Electricity Authority, electricity cost indices rose by 9.8% in May, as a result of a 60% rise in coal prices.
The closure of four coal units in Hadera that was planned according to the government decision for July 2022 is delayed, so the impact of high coal prices continues to roll over to the electricity tariff.
It will be recalled that on April 12 this year, the Electricity Authority reduced the tariff by 2% following the state's waiver of excise duty on coal, in accordance with the government's plan to reduce the cost of living of the government.
In this decision, the authority wrote: "Due to the uncertainty about the continuation of the war and its effects on energy prices, the authority believes that it should wait with another update to the electricity tariff, but will continue to closely monitor coal prices and examine the need for regular updating."
The Electricity Authority responded: "Updating electricity prices depends on the authority's decision, and the criteria do not require immediate updating but instruct the authority to discuss it. The authority monitors developments in fuel prices but has not yet made a decision on the matter."
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