What is the petrol price in Israel in 2026?

Israel's average unleaded petrol (benzin 95) price in 2026 is approximately ILS 7.20–8.00 per litre (~€1.85–2.05/l at ILS/EUR ~3.9). Israeli pump prices include a substantial fuel excise (blo masav), 17% VAT, and a fuel levy. Israel's Ministry of Energy sets a maximum regulated pump price for 95-octane petrol monthly, based on a formula referencing global crude prices and the ILS/USD exchange rate. Diesel prices are approximately ILS 6.80–7.60/l.

How does Israel regulate fuel prices?

Israel uses a hybrid regulated-market system. The Ministry of Energy publishes a maximum retail price for 95-octane petrol each month, calculated using a formula tied to global oil product benchmarks (Mediterranean Platts prices), the ILS/USD exchange rate, excise duty, and a fixed retail margin component. Diesel is fully deregulated in Israel since 2019 — prices are set by the market. LPG for vehicles (autogas) is also market-priced. The monthly price update creates a well-publicised 'first of the month' price change effect, with Israeli drivers often filling up just before a price rise.

How do Israeli fuel prices compare to Jordan and Egypt?

Israel's petrol prices (~€1.85–2.05/l) are significantly higher than Jordan (~€0.85–1.00/l) and Egypt (~€0.35–0.50/l equivalent). Jordan maintains a fuel subsidy system partially managed by the government, while Egypt heavily subsidises retail fuel prices for domestic consumers — one of the most heavily subsidised regimes in the Middle East. Israel, as a high-income economy, does not subsidise retail fuel; its high prices reflect European-style excise levels and 17% VAT. Israel is also not an oil producer of significance and imports all refined products and crude oil.

Israel Fuel Prices 2026

Published 1 September 2026 · Updated 20 October 2026

Israel maintains a hybrid fuel pricing system: the Ministry of Energy sets a monthly maximum retail price for 95-octane petrol, while diesel has been deregulated since 2019. In 2026, Israeli petrol (benzin 95) costs approximately ILS 7.20–8.00/l (~€1.85–2.05/l) — among the higher-priced fuel markets in the Middle East, reflecting European-style excise duties, 17% VAT, and no retail subsidy.

For broader Middle East context, see our Qatar fuel prices 2026. For EU fuel price comparisons, see our Europe fuel prices 2026 overview. For the global crude benchmark underpinning Israeli import prices, see our Brent crude glossary entry.

Israeli pump prices 2026

Fuel	Price (ILS/l)	Price (€/l approx.)
Benzin 95 (regulated maximum)	ILS 7.20–8.00	~€1.85–2.05
Benzin 98 (premium, deregulated)	ILS 7.80–8.60	~€2.00–2.21
Diesel (deregulated)	ILS 6.80–7.60	~€1.74–1.95
LPG autogas (deregulated)	ILS 3.20–3.80	~€0.82–0.97

Israel's monthly fuel price regulation

The Ministry of Energy's monthly petrol price formula accounts for:

Mediterranean product prices: Platts Mediterranean published prices for unleaded 95 — the primary market reference for Israeli refined product imports
ILS/USD exchange rate: Israel imports refined products priced in USD; a weaker shekel raises domestic pump prices automatically via the formula
Fixed components: excise duty, port and distribution margins, and retail station margin — all fixed in ILS and reviewed periodically
Timing effect: the monthly update creates a well-known "eve of month" filling behaviour — drivers top up before an anticipated price rise

Diesel deregulation (since 2019) means diesel prices move daily with market conditions; in practice Israeli diesel tracks product crack spreads vs crude closely. For exchange rate effects on fuel import costs, see our currency and fuel prices guide.

Israeli fuel tax structure

Component	Petrol 95	Diesel
Excise duty (blo masav)	~ILS 2.65/l	~ILS 1.98/l
VAT (17%)	~17% of pump price	~17% of pump price
Infrastructure/port levy	~ILS 0.15/l	~ILS 0.15/l
Total tax share	~55–60% of pump price	~50–55% of pump price

Israel's 17% VAT is among the lowest in developed economies applying standard VAT to fuel — lower than Germany's 19% and France's 20%. However, Israel's excise on petrol is substantial, broadly comparable to Northern European levels. For EU excise comparison, see our excise duty glossary entry.

Middle East & eastern Mediterranean fuel price comparison 2026

Country	Petrol 95 (€/l approx.)	Subsidy / regulation note
Israel	~€1.85–2.05	Regulated maximum (Ministry formula); no subsidy
Jordan	~€0.85–1.00	Partial subsidy; monthly government price review
Egypt	~€0.35–0.50	Heavy state subsidy; among lowest prices globally
Lebanon	~€1.20–1.60	Post-subsidy removal 2021; volatile due to LBP exchange crisis
Turkey	~€1.60–1.85	High excise + VAT; TRY depreciation creates volatility

Israel's natural gas discovery and domestic energy
Israel's offshore Leviathan and Tamar gas fields (discovered 2009–2010) transformed Israel from a fuel-import dependent economy into a natural gas exporter. By 2026, Israeli natural gas production (~21 bcm/year) covers domestic electricity generation and is exported to Egypt and Jordan via pipeline. However, Israel has no domestic crude oil production and imports all petroleum products — meaning petrol and diesel pump prices remain fully tied to international oil markets and are not insulated by domestic production. For upstream oil contract structures, see our production sharing agreement glossary entry.

Frequently asked questions

What is the petrol price in Israel in 2026? Israeli benzin 95 (regulated maximum) is approximately ILS 7.20–8.00/l (~€1.85–2.05/l) in 2026. Excise duty (~ILS 2.65/l) and 17% VAT account for ~55–60% of the pump price. Diesel is deregulated and broadly similar at ILS 6.80–7.60/l.: Israeli benzin 95 (regulated maximum) is approximately ILS 7.20–8.00/l (~€1.85–2.05/l) in 2026. Excise duty (~ILS 2.65/l) and 17% VAT account for ~55–60% of the pump price. Diesel is deregulated and broadly similar at ILS 6.80–7.60/l.
How does Israel regulate fuel prices? The Ministry of Energy sets a monthly maximum retail price for 95-octane petrol based on Mediterranean Platts product prices, the ILS/USD exchange rate, and fixed cost components. Diesel (since 2019) and LPG are fully deregulated. The monthly update creates end-of-month filling behaviour when a price rise is expected.: The Ministry of Energy sets a monthly maximum retail price for 95-octane petrol based on Mediterranean Platts product prices, the ILS/USD exchange rate, and fixed cost components. Diesel (since 2019) and LPG are fully deregulated. The monthly update creates end-of-month filling behaviour when a price rise is expected.
How do Israeli fuel prices compare to Jordan and Egypt? Israel (~€1.85–2.05/l) is dramatically more expensive than Jordan (~€0.85–1.00/l, partial subsidy) and Egypt (~€0.35–0.50/l, heavy state subsidy). Israel has no retail fuel subsidy; its prices reflect full-cost recovery plus European-style excise. Israel imports all petroleum products — domestic gas fields do not produce oil.: Israel (~€1.85–2.05/l) is dramatically more expensive than Jordan (~€0.85–1.00/l, partial subsidy) and Egypt (~€0.35–0.50/l, heavy state subsidy). Israel has no retail fuel subsidy; its prices reflect full-cost recovery plus European-style excise. Israel imports all petroleum products — domestic gas fields do not produce oil.