Motorists now have to pay 6.23 shekels a liter ($5.13 a gallon) for 95 octane unleaded gas. Most self-service stations offer a discount of 15 agorot. The Value Added Tax (VAT) is approximately 88 agorot a liter, and this year's fuel pump hikes of about 1.50 shekels have given the government an unexpected bonus of approximately 25 agorot a liter.
Surging oil prices threaten to wreck the government economic program, which is based on an inflation rate of between one and three percent a year. Consumers enjoyed a near-zero inflation rate in the beginning of 2005, but the consumer price index recently has been rising more than three percent following oil price rises.
The fuel price increase along with the additional consumer demand in pre-holiday spending will boost the August rate even further. More price increases also are expected for electricity and for products which have petroleum ingredients. Israelis depending on kerosene and solar fuel to heat their houses for the winter face steeper bills.
Surging oil prices threaten to wreck the government economic program, which is based on an inflation rate of between one and three percent a year. Consumers enjoyed a near-zero inflation rate in the beginning of 2005, but the consumer price index recently has been rising more than three percent following oil price rises.
The fuel price increase along with the additional consumer demand in pre-holiday spending will boost the August rate even further. More price increases also are expected for electricity and for products which have petroleum ingredients. Israelis depending on kerosene and solar fuel to heat their houses for the winter face steeper bills.