Israel Gas Prices Ranked Third Highest in the World

Bloomberg ranking notes that in Israel, a gallon of premium gas costs $9.28, while in the U.S. drivers pay $3.75; in Venezuela, the same gallon costs 9 cents.

Israel placed third in a ranking of 60 countries according to the price of a gallon of gas, published by Bloomberg last week.`

Israeli drivers pay $9.28 a gallon for premium gasoline, compared to $4.89 in China and $3.75 in the United States, according to Bloomberg.

The survey noted that the Israeli government regulates the price of gasoline, and that taxes typically make up about half the cost of a gallon of gas. It also noted that while Israel taxes gasoline, it simultaneously subsidizes oil to the tune of some $565 million per year.

Bloomberg noted that Prime Minister Benjamin Netanyahu recently lowered the price of gas 2.9 percent in order to prevent the price at the pump from rising with global oil prices, after the high cost of living in Israel led to a wave of social protests.

According to Bloomberg, the average daily income in Israel is $87, so a gallon of gas costs around 11 percent of an average day's wages. On this measure, Israel ranked near the middle of the pack.

In countries where fuel is subsidized by the government, gas prices are much lower. In Egypt, for example, a gallon costs $1.73, while Saudis pay $0.61 at the pump and Venezuelans pay only 9 cents.

The world's most expensive gas, according to the survey, can be found in Norway, where drivers pay $10.12 for a gallon of premium gas. While the country has significant oil reserves of its own, instead of using the money to subsidize vehicle fuel it goes to fund social spending such as free college education and national infrastructure.

Turkey came in second, with gas prices slighter higher than those in Israel. However, with an average daily income of $30, a gallon of gas in Turkey costs around a third of a day's wages.

Tomer Appelbaum