April gasoline price unchanged despite excise cut

At midnight between Saturday night and Sunday the maximum retail price of a liter of unleaded 95 octane gasoline at a self-service pump will remain unchanged at NIS 6.81 (including VAT). April will be the second consecutive month in which the price is unchanged.

The Ministry of Energy explained the unchanged maximum price by the fact that the 3.5% cut in the excise duty on fuel was offset by a 4% rise in the global price of oil. In the formula for calculating the maximum fuel price, the excise duty remains the largest single component of the retail price. Of the NIS 6.81 for a liter of gasoline, NIS 2.9 goes to the state in excise duty, and another NIS 1 in VAT.

RELATED ARTICLES

Smotrich cuts excise tax to offset gasoline price hike

Liberman cuts excise tax on fuel

Treasury plans travel tax on EVs to replace fuel excise

Exactly a year ago, the previous government decided on a temporary reduction in the excise duty as the price of oil soared with the outbreak of the war in Ukraine. Since then, the reduction has been extended at various amounts. Yesterday, Minister of Finance Bezalel Smotrich ordered a larger cut in the tax on fuel, despite the fall in global crude oil prices.

The cut in excise duty will cost the state NIS 130 million in lost revenues. In March, the excise duty reduction was NIS 0.45 per liter of gasoline. This was meant to fall to just NIS 0.13 in April. Now, the reduction will be NIS 0.56 per liter in April. Unless it is again raised, the excise duty reduction will fall to NIS 0.13 from May until the end of the year.

Published by Globes, Israel business news – en.globes.co.il – on March 30, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.