Daily Israel Report

Tiny Drop in Fuel Price

The government cuts a deal with fuel companies – and a drop in fuel prices is less than expected as a result.
By Chana Ya'ar
First Publish: 5/31/2012, 10:53 AM

Fill'er up?
Fill'er up?
srael news photo: Flash 90

The government has cut a deal with fuel companies – and a drop in fuel prices will be less than expected as a result.

Worldwide oil market prices have fallen by 15 percent over the past month, and it was expected that drop would have been passed on to the stressed Israeli consumer.

But the government came to an agreement with Israeli fuel companies to allow a raise in profits, leaving consumers with a smaller drop in prices at the pump.

On Thursday night at midnight, prices will be reduced, the government announced – but it is not yet clear by how much.

The price of 95 octane unleaded gasoline, originally set to drop by 30 agorot per liter, may now instead be reduced by less.

A final decision on the amount is not to be released until later in the day.

Israel is currently working to promote “clean energy” cars by authorizing special benefits to consumers who purchase electric cars. In addition, Cabinet ministers last month approved a proposal not to raise the sales tax on hybrid vehicles. 

The government passed a total package that cost the government some NIS 130 million, which takes effect this Friday.