Israel's Finance Minister Orders Fuel Tax Cut Amid Global Energy Crisis

Israeli Finance Minister Bezalel Smotrich has ordered the promotion of a reduction in excise tax on gasoline, aiming to prevent an expected rise in fuel prices. The move comes in response to the global energy crisis and ongoing tensions with Iran, which are anticipated to drive up energy costs.

Officials within the Ministry of Finance are currently discussing the specific amount of the tax reduction and the mechanism for its implementation. Smotrich intends to sign the relevant order as soon as possible, with the goal of having the price decrease take effect within days.

The reduction in excise tax, a component of the consumer price of gasoline, is intended to mitigate the impact of global energy price increases on Israeli drivers. The exact percentage of the tax cut and its final effect on pump prices have not yet been determined, pending the completion of professional discussions within the ministry.

Smotrich's office stated that the intention is to act swiftly, with the order expected to be signed shortly after the internal work is completed. The measure aims to absorb at least part of the anticipated price increase, preventing the full burden from falling on consumers.