Alternative Fuels in Israel (NOT!)
Where does Israel get it's oil from?Interesting article, although the entire issue raises some difficult questions.
1. Israel has displayed almost zero resolve to wean itself from foreign oil sources.
2. Barring the reconquering of Sinai, there is little chance that Israel will ever possess its own large scale oil reserves.
3. Prohibitively high gas prices (now about 6.00 USD per-gallon for regular unleaded) have not stopped anyone from reducing fuel consumption or from buying gas-guzzling vehicles.
4. Diesel fuel, which has always benefited from from a significant tax break (bringing the price of diesel in Israel to almost 2.00 USD cheaper per-gallon than regular unleaded)--and is the favored fuel of the taxi, public transportation, and driving school industries--will in the coming years be taxed just like regular fuel. There will then be no incentive to purchase vehicles with diesel engines, even though they are proven to be 40% more fuel efficient than regular gas vehicles!
5. Biodiesel: Israelis fry everything! Chips, Schnitzel, Shakshuka, you get the idea. The idea behind biodiesel is that waste oils (even those already used for cooking!), and not OPEC petroleum, can be used to fuel automobiles with diesel engines. But there is no talk in Israel of biodiesel, whatsoever.
6. Ethanol: This alternative fuel made a big buzz in the USA after fuel prices spiked precipitously a few months ago. Ethanol is basically pure, unadulterated alcohol, distilled from crops as sugarcane, switchgrass, or corn. A lot of gas in the US already contains 10% Ethanol as an additive, and while the US lags far behind Brazil in its widespread adoption of E85 (85% Ethanol, 15% unleaded), some new federal initiatives might change that situation in the coming years. Surely, it must be cheaper to import Ethanol than oil!!
7. Taxes: Israel has one of the highest purchase taxes on new automobiles in the civilized world (that's assuming that Israelis are civilized, which is definitely up for debate). The exact tax varies based on a number of variables such as engine size and the amount of airbags, but it hovers around 120% (which includes VAT). I could potentially write an entirely separate post on the stupidity (even though the tax is meant to discourage the purchasing of cars, people have adjusted their incomes [at great loss] to facilitate purchase) and anachronism of the (socialist) tax. But being that Israel has about 120% of pure profit to play with for each purchase, wouldn't it be a good idea to grant tax incentives (as is done in the US) to people who purchase fuel efficient vehicles? The Toyota Prius and the new Honda and Toyota hybrids should, a priori, be among the most popular cars in the country. After all, with the inflated gas prices, one could probably pay off the premium of a hybrid car after only a filling a few tanks of gas. But no. That would be logical. And logic doesn't go in the land of 6,000,000 presidents.
1. Israel has displayed almost zero resolve to wean itself from foreign oil sources.
2. Barring the reconquering of Sinai, there is little chance that Israel will ever possess its own large scale oil reserves.
3. Prohibitively high gas prices (now about 6.00 USD per-gallon for regular unleaded) have not stopped anyone from reducing fuel consumption or from buying gas-guzzling vehicles.
4. Diesel fuel, which has always benefited from from a significant tax break (bringing the price of diesel in Israel to almost 2.00 USD cheaper per-gallon than regular unleaded)--and is the favored fuel of the taxi, public transportation, and driving school industries--will in the coming years be taxed just like regular fuel. There will then be no incentive to purchase vehicles with diesel engines, even though they are proven to be 40% more fuel efficient than regular gas vehicles!
5. Biodiesel: Israelis fry everything! Chips, Schnitzel, Shakshuka, you get the idea. The idea behind biodiesel is that waste oils (even those already used for cooking!), and not OPEC petroleum, can be used to fuel automobiles with diesel engines. But there is no talk in Israel of biodiesel, whatsoever.
6. Ethanol: This alternative fuel made a big buzz in the USA after fuel prices spiked precipitously a few months ago. Ethanol is basically pure, unadulterated alcohol, distilled from crops as sugarcane, switchgrass, or corn. A lot of gas in the US already contains 10% Ethanol as an additive, and while the US lags far behind Brazil in its widespread adoption of E85 (85% Ethanol, 15% unleaded), some new federal initiatives might change that situation in the coming years. Surely, it must be cheaper to import Ethanol than oil!!
7. Taxes: Israel has one of the highest purchase taxes on new automobiles in the civilized world (that's assuming that Israelis are civilized, which is definitely up for debate). The exact tax varies based on a number of variables such as engine size and the amount of airbags, but it hovers around 120% (which includes VAT). I could potentially write an entirely separate post on the stupidity (even though the tax is meant to discourage the purchasing of cars, people have adjusted their incomes [at great loss] to facilitate purchase) and anachronism of the (socialist) tax. But being that Israel has about 120% of pure profit to play with for each purchase, wouldn't it be a good idea to grant tax incentives (as is done in the US) to people who purchase fuel efficient vehicles? The Toyota Prius and the new Honda and Toyota hybrids should, a priori, be among the most popular cars in the country. After all, with the inflated gas prices, one could probably pay off the premium of a hybrid car after only a filling a few tanks of gas. But no. That would be logical. And logic doesn't go in the land of 6,000,000 presidents.
posted by LonelyManofCake at 8:56 AM
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