Run to refuel: the price of fuel is expected to jump on Thursday Israel today

Prepare your wallets:

despite the drop in the price of oil, the price of fuel is expected to increase by 70 cents per liter on Thursday, according to estimates in the energy industry.

If the estimates are correct, the price per liter of 95 octane gasoline will jump from NIS 6.46 to NIS 7.16 per liter.

We emphasize that at this stage this is an estimate, and the fuel price will be published tomorrow by the Ministry of Energy.

The apparent jump in the price of fuel is mainly explained by the end of the reduction of the excise tax on fuel at the level of 1 shekel per liter, which was led by the outgoing government.

The state has been subsidizing the price of fuel since April by reducing the tax on fuel.

The Ministry of Finance's order reducing the excise duty ended on November 15 and was then extended by outgoing Finance Minister Lieberman until the end of the month.

Those around Lieberman said today that the tax benefit will end at the end of the month because "there is no budgetary source and legal approval to continue it".

The budgetary cost of extending the excise tax reduction per year is estimated at about one billion shekels, but due to the fact that this is an outgoing government, there is a legal difficulty in extending the decree even if there was a budgetary source for it.

We will also note that the price of oil in the world dropped sharply in the last month, so that if it weren't for the jump in the tax, the price of fuel at the stations would have dropped by 30 cents per liter.

We will recall that Prime Minister-designate Binyamin Netanyahu pledged to "freeze the generators of inflation" - the electricity, water, property tax and fuel rates.

As for the freezing of the fuel price, it is a relatively simple procedure that does not require legislation, but rather the signature of the Minister of Finance and the approval of the Finance Committee, and of course the finding of funding sources.

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