1. Flexible pricing: On the street, charge the appropriate price for each hour and each area.

The so-called "parking shortage" is often a perception rather than a reflection of reality. It stems from the gap between the low price of on-street parking and the higher cost of parking in nearby lots. This price gap encourages drivers to search for on-street parking, sometimes for extended periods. To prevent unnecessary driving in circles, on-street parking should be priced to reflect demand.

It is not necessary for the price to match that of parking lots, but in some cases, it might equal or even exceed it. There are also cases where the price should be lower than the current standard used by the city. The correct parking price is the lowest fee that optimizes the use of parking spaces at any given moment while ensuring availability for drivers arriving in the area who need parking. Ideally, the price should reflect the balance between parking demand and supply, aiming for 80-85% occupancy. This occupancy rate allows drivers to find parking quickly, reducing wasted time, energy, air pollution, and congestion caused by excessive searching.

Parking prices can be dynamic, varying between areas and times of the day. If price increases are necessary but cannot yet be implemented, parking time limits should be enforced (a common method in Israel), and these restrictions should be strictly monitored (a rarity in Israel). Differential pricing enables effective parking regulation and optimal resource utilization. This enables people to decide between paying less and walking further, or paying more and parking closer to their destination. High-demand areas will see increased parking turnover, while less central areas will be used more effectively.

In most Israeli cities, parking fees along blue-and-white curbs stop between 6:00 PM and 8:00 PM. However, certain areas experience peak activity in the evening. Free evening parking often leads to private parking lots being closed at night because they remain empty, as drivers prefer to search for free on-street parking, even risking fines for illegal parking rather than paying for a space in a lot.

Despite these considerations, it is important to maintain simplicity in setting parking rates, even at the cost of some efficiency. It is recommended to set prices at the zone level rather than for individual streets. Additionally, it is advisable to divide the day into a few broad time blocks, such as morning (8:00 AM–12:00 PM), afternoon (12:00 PM–4:00 PM), evening (4:00 PM–8:00 PM), and night (8:00 PM–8:00 AM).