The price of gasoline will fall by NIS 0.63 per liter on Wednesday at midnight, it has been officially announced, due to the decline in the price of oil on world markets in the past month.
The maximum price of a liter of 95-octane gasoline at self-service pumps will be NIS 6.27 as of January 1, its lowest level in five years. Drivers filling their tanks at full service pumps will pay an extra NIS 0.19 per liter.
The price of fuel in Israel is set according to the price in the last four days of the month at Lavera in France. But the international gasoline price represents only 35% of the final pump price in Israel. The second component is excise, comprising 41% of the eventual price. The fuel stations' selling margin accounts for about 9% more, and VAT of 18% on these three components makes up the rest.
In Eilat where no VAT is charged, the price of a liter of 95-octane gasoline at self-service pumps will be NIS 5.32 from Wednesday night, a fall of NIS 0.53.
The high tax charged in Israel makes gasoline far more expensive than in the US and Canada where the average cost of 95 octane is about NIS 2 per liter.
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2014
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