Gas prices climb to break all time records
Israelis fuming about rising gas prices
Ilan Ben Zion is an AFP reporter and a former news editor at The Times of Israel.
Fuel prices will increase by 5.09 percent at midnight, bringing the price of 95 octane gas up to a record breaking 8.05 shekels per liter, the ministry of Energy and Water announced Wednesday. Gas prices have increased by 20% over the last 14 months.
The increase is being blamed on rising global oil prices, but critics point to high taxes as being partially to blame. Fifty percent of the cost of gasoline in Israel goes to taxes. The current price at the pump in Israel is one of the highest rates in the world.
According to FullTank, in March 2009, one liter of 95 octane gas cost 5 shekels per liter, a year later it stood at 6.5 shekels per liter, and last year it was 7.3 shekels per liter.
Israel Hayom reported on Monday that Knesset Finance Committee Chairman MK Carmel Shama-Hacohen (Likud) proposed a law to mitigate the rising cost of fuel by reducing value-added tax (VAT) on gasoline.
Economist Shlomo Maoz told Globes that Israel should not sacrifice financial discipline by tinkering with gas taxes in order to cater to consumers. Instead, he urged those grumbling about gas prices to carpool or take public transportation.
Increasingly, Israelis are heeding Maoz’s counsel and finding alternatives to their cars by riding bikes or carpooling to accommodate the rising cost. Yedioth Ahronoth reported on Monday that since more Israelis are riding their bikes to work, some offices are beginning to provide showers and puncture repair kits for their employees.
The growing popularity of bicycles has also led Israel Railways to amend its policy concerning inter-modal transportation, Maariv reported. Until recently the train company only permitted foldable bicycles into its stations. But because of the rise in gas prices, it is allowing all bicycles on the trains for a limited, trial period.
Even the fuel frugal are going to be affected by rising gas prices, however, because consumer goods are expected to rise in cost. Food, particularly cheese, bread, and vegetables, as well as clothes, furniture, and plasticware, are all due to get pricier. So are moving company rates and electric bills, both heavily dependent on gas.
