Israel’s News Blog Magazine: Daily Stories Video and PhotosAre you feeling ‘pumped up’ by spiraling prices paid for each liter of petrol you put in your car’s tank? Well, as high as you think these prices are (now N.S. 6.18 per liter of 95 octane unleaded fuel), they are still cheaper than prices that most Europeans pay.
For example, in the U.K., one of the highest priced European countries, consumers pay U.S. $ 6.47 per imperial gallon (4.5 liters = 1 imperial gallon) for the equivalent octane unleaded fuel. Germans pay around $6.56 per gallon and Norwegians, the highest priced EU country, pay US $ 7.19!
The high fuel prices that both Britons and Norwegians pay are despite the fact that both benefit from North Sea oil production. World oil prices are now at US$73 per barrel and could go even higher.
Britons drive less than most Israelis as well, averaging 9,000 miles or 14,500 km per year. Of the price they pay for their fuel, 60% is governmental tax (before VAT). Although we pay 56% tax on our fuel, plus 16.5% VAT, the total paid per Imperial gallon is US $ 5.24, and US.$ 4.98 per US gallon, which is 3.8 liters, instead of 4.5.
Of course, all of the above prices are considerably higher than prices Americans pay at the pump, which now average between US$ 2.60 and $3.20 depending on the amount of octane, and where purchased. Self –service petrol, now
available in most Israeli gas stations reduce the price a bit, as in other countries, making it worth while to go through the operations required to receive the 15 or so agorot per liter savings.
Israel imports nearly all of its petroleum, most of which is purchased either from Egypt, Mexico, or on the international ’spot market’. As oil prices continue to rise, drivers in this country will continue to feel the bite in their pocketbooks. And, as one driver quipped on T.V. a few days ago, he’ll “go out and buy a horse” if prices go any higher.
Unless Ethanol, an alcohol based fuel made from sugar cane and corn, or LNG become more readily available in this country, Israelis are going to have to make do with higher fuel prices, and possible fuel shortages as well.
Already, many people are riding bicycles as a sporting option on weekends; and this form of transportation may once again return as a popular form of local transportation as it once was in cities, towns, and on the kibbutzim. Israel simply doesn’t have much in the way of petroleum reserves, although substantial natural gas deposits have been found in the eastern Mediterranean.
The American actor/comedian Will Rogers once said back in the 1930’s, regarding oil supplies: “they ain’t makin’ it anymore”. Except for Ethanol, and related products, no truer words were ever said. And increasing costs at the pump will simply be a fact of life from now on.
One Comment
If Israel will look at the Brazilians and the way
they use Ethanol succesfuly and in a large scale,
and make the effort with her outstanding research
capabilities,I am sure even better solutions will
be found.
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