June brings price hikes in multiple sectors for Israeli consumers

Price hikes in multiple sectors were enacted Monday, June 1, hitting Israeli consumers with increased prices for gas, food products, public transportation, and more.

The price of gas increased Monday at midnight, bringing prices to up to NIS 7.56 for a liter of gasoline purchased through self-service, Israeli media reported. This is an increase of NIS 0.04 per liter.

Gas prices are updated monthly and the prices are impacted by the cost of insurance and freight, and excise tax, among other factors. The price increase this month was driven by an increase in insurance, freight, and VAT, said the Energy Ministry.

Public transportation prices also increased Monday, after they increased early last week for those paying with mobile applications. The hikes included increases of around 5% for monthly passes, and single ride prices went from NIS 5.5 to NIS 6 – an increase of nearly 10%.

Following multiple recent price hikes for food products from Tnuva, Strauss, and Coca-Cola, Osem price increases were set to take effect Monday. Prices will increase by an average of 2.2%, Israeli media said.

The price of water was also set to increase by 1.6% starting July 1, Israeli media reported.

Cost of living

Public interest group Lobby 99 blamed some of the price increases on a government failure to take the cost-of-living in Israel seriously.

“Since the start of the war, the big food companies have raised prices by dozens of percent,” they said, adding that while the government does not enact necessary changes such as import reforms and breaking up monopolies, “the public will continue to choke and buckle under the load.”

While the lobby says it has been suggesting reform options for years, “the government gives in again and again to pressure from those who benefit from the cost-of-living,” they said.