Gasoline prices in Israel 25% higher than in Europe

The average price of gasoline in 15 Western European countries was €1.15 per liter in December 2010, while in Israel, gasoline cost €1.41 per liter
 
The recent increase in excise as well as higher global crude oil costs sent the price of gasoline in Israel to new record high. 
 
The Knesset Research Department recently published its first ever special report on the issue. The report states quite unequivocally that the average price of gasoline in 15 Western European countries was €1.15 per liter in December 2010, while in Israel, gasoline cost €1.41 per liter, a difference of almost 25%.
 
The Knesset Research Department says that the price of gasoline comprises three elements: the ex-gate price at refineries (representing the price of oil), the marketing margin of fuel companies and taxes.
 
The comparative study of Israel's fuel market with 15 Western European countries found that the marketing spread for the fuel companies in Israel, which reflects their marketing and fuel delivery expenses and their profit from the sale of fuel, was 80% higher than in the European countries.
 
Europeans pay €0.10 per liter for this factor, while Israelis pay €0.18 per liter. The excise factor is also higher in Israel than in Europe: Israelis pay €0.78 per liter in excise, 18% more than the €0.67 per liter paid by Europeans.
 
These figures are for December, before the Government raised the excise. The study found that gasoline prices are 53% more expensive here today than they were in 2005 (versus a 38% increase in EU states).
 
At this point it’s instructive to recall that  global crude oil prices climbed by less than 20% in the past year and remain only half of what they were a couple of years back.The situation for diesel is even worse: its price rose 97% over the same period.