The price of fuel in September is expected to increase by about 10 agorot per liter starting this Friday. However, it appears that the state is expected to absorb part of the price increase by reducing the tax.
According to estimations, following the upcoming increase, the price of a liter of fuel is expected to be 6.95 shekels.
It's worth noting that since April 2022, due to the rise in fuel prices, continuous temporary measures have been implemented to reduce the purchase tax and the excise tax on gasoline. The current temporary measures result in a reduction of approximately 41.5 agorot from the consumer price per liter of gasoline compared to the price without tax reductions.
The price of fuel is mainly influenced by the gross oil price, from which gasoline and diesel are derived. It also includes processing and distribution costs, taxation, and fluctuations in foreign exchange rates. To a lesser extent, it's affected by supply and demand dynamics and competition among fuel companies or gas stations.
The taxation component varies from country to country. In European countries, Japan, and Israel, there is a high tax on fuel, whereas in the United States, the level of taxation is lower. Additionally, there are countries like Saudi Arabia or Venezuela that subsidize the cost of fuel for consumers.
The demand for fuel in the Western world is much higher than the demand in the rest of the world. In 2011, the United States consumed an average of 1.46 billion liters of fuel per day.
