Israel’s tax on fuel among world’s highest
OPEC’s decision to cut production causes hike in energy prices all over the world, but hits Israel harder
The tax rate on the consumer price of a liter of fuel is 65%, amounting to NIS 3.90 per liter, according to the November index, compiled by the Israel Institute of Energy and Environment. The Institute found that Israel had the fifth highest gasoline taxes among developed countries, with only the Netherlands, Italy, Finland, and Greece having the same or higher fuel taxes.
The Institute also found that the tax rate on fuel had risen 10%, from 55% to 65%, in four years. State tax revenue from excise tax on gasoline currently totals NIS 13 billion a year.
How much does it cost us a month? According to the results of the Institute’s study, the average monthly cost of energy taxes for a household totaled NIS 850 in November: NIS 620 in gasoline excise taxes, NIS 180 in VAT on gasoline, and NIS 50 in the electricity bill.
The maximum per-liter self-service consumer price for 95 octane gasoline rose yesterday by NIS 0.14 to NIS 6.03, following an increase in global oil prices. The global price of black gold jumped from $46 to $50 a barrel last month.
This rise in the global price of oil resulted from the decision by the Organization of Petroleum Exporting Countries (OPEC) to cut production, which affected energy prices all over the world, but had an even greater effect in Israel, given the heavy taxes imposed on fuel prices.