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Profits Cut, but Gas Price to Rise

The price of gas will go up by 0.05 shekels a liter, despite a government cut of 0.19 shekels per liter in company profits.
By Maayana Miskin
First Publish: 8/31/2011, 10:30 PM

Pumping gasoline
Pumping gasoline
Flash 90

Minister of National Infrastructure Uzi Landau signed Wednesday on an order reducing gas company profits by 0.19 shekels a liter.

However, Israelis are still facing high prices at the pump: starting Wednesday at midnight, the price of a liter of unleaded 95-octane benzine at the self-service pump will be 7.27 shekels a liter, a 0.05 shekel raise. Full service will cost an addition 0.20 shekels per liter.

In Eilat, gas remains significantly cheaper. The price is set to go up by 0.02 shekels per liter to 6.26.

Landau signed the order slashing profits after Finance Minister Yuval Steinitz did the same. Steinitz urged his colleague to ignore the gas companies' warnings that the cut would have a serious impact.

“There is no reason to continue giving in to the companies' pressure,” he recommended. “They will not collapse, and they won't fire thousands of workers.”