Israel hikes fuel prices for third consecutive month

JERUSALEM, March 1 (Xinhua) -- Israel raised gasoline prices for the third month in a row on Friday, reaching the highest level since July 2022, as the government cut subsidies amid a wartime budget.

The new maximum price for unleaded 95-octane gasoline is 7.51 shekels (2.11 U.S. dollars) per liter, up 1.76 percent from February and 8.2 percent from October, when it was 6.94 shekels.

The Israeli energy ministry said the latest hike was based on the average fuel prices in Mediterranean basin countries.

A key factor behind the rising prices is the government's decision to end the subsidy for the excise tax, a major component of the fuel price, as part of the 2024 budget that boosts defense spending and slashes other costs.