The government will absorb the higher price for gasoline in August by cutting the excise, under an agreement between Minister of Finance Yuval Steinitz and Minister of National Infrastructures Uzi Landau today.
The price of self-service 95 octane gasoline was due to rise at midnight tonight by NIS 0.31 per liter to NIS 7.53, a near all-time high. However, Steinitz signed a directive cutting the excise - which accounts for 40% of the retail price of gasoline - by the amount of the increase. The directive will be valid until September 1.
During August, the Ministry of National Infrastructures prices committee is due to decide whether to reduce the fuel companies' marketing margin, which currently amounts to NIS 0.70 per liter. Steinitz and Landau agreed that if the committee cannot reach a decision by the end of August, the marketing margin will be cut by NIS 0.15 per liter, and the excise will be cut by the same amount, which will lower the price of gasoline by NIS 0.30 per liter.
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