After a 26 agorot increase in the price of gas last month, the price dropped 9 agorot at midnight last night, the eve (Sunday night to Monday) of 24 Tammuz 5773.

As a result, a liter of self-service 95 octane gasoline costs 7.43 NIS. Based on the Bank of Israel closing rate on Monday, 23 Tammuz 5773 of $1/3.637 NIS, a US gallon of gas costs $8.17. If a driver prefers full service over self-service, s/he will pay an additional 18 agorot a liter for the luxury.

While gasoline prices dropped, the new alcohol reform began, resulting in a significant increase in the price of alcoholic beverages. For example, a bottle of locally produced Arak which sold for 30 NIS will sell for 60 NIS following the hike.

Officials explain the more expensive a bottle was to date, the more sizable the discount. That is to say a bottle of a premium item selling for 3,000 NIS in June 2013 will now sell for 1,500 NIS.

Professionals in the business explain “they want the inexpensive stuff to disappear, and that is what will occur.” It appears the Arak for 60 NIS will be the least expensive bottle available, and most items will begin at closer to 100 NIS.

Some comparative pricing before and after the increase:

Vodka

40-200 NIS before the increase

90-250 NIS after the increase

Inexpensive scotch

44-50 NIS before the increase

70-80 NIS after the increase

Brandy

60-100 NIS before the increase

100-120 NIS after the increase

Cognac

250-3,000 NIS before the increase

200-1,500 NIS after the increase

Some Actual Prices

1. Perfect Vodka Classic – was 40 and is now 104 NIS

2. Elite Arak – was 37.50 and is now 81.50

3. Azim Arak – was 30 and is now 60 NIS

4. Jonny Walker Gold – was 955 and is now 692 NIS

5. Rami Martin XO was 1,871 and is now 1,142 NIS

In short, for those who can afford the name brand imports, life become less expensive. For the poor guy, drinking a l’chaim may be a thing of the past.

Finance Minister Yair Lapid told party faction members that he is among those who do not like the tax. However, the deal he explained was reached by former Finance Minister Dr. Yuval Steinitz with the OECD (Organization for Economic Cooperation and Development) and therefore, he cannot do anything about it.

(YWN – Israel Desk, Jerusalem)