Treasury Warns Against Fuel Price Freeze Amid Election Concerns
Translated & summarized from Behadrei Haredim by baba
Israeli Finance Ministry professionals oppose a fuel price freeze proposed by Finance Minister Bezalel Smotrich due to concerns over budget overruns. The proposed subsidy could cost tens of millions of shekels monthly, with legal review pending on potential election-period benefits.
The story in 5 lines · by baba
- Treasury officials oppose a fuel price freeze due to budget concerns.
- The proposed subsidy could cost 50 million shekels monthly.
- Further price reductions are being considered.
- Legal review is pending on election-period benefits.
- The freeze aims to prevent a fuel price hike tonight.
Israeli Ministry of Finance professionals are opposing Finance Minister Bezalel Smotrich's intention to issue an order preventing a fuel price hike scheduled for tonight. The opposition stems from concerns about further budget overruns and the inefficient use of subsidized fuel.
According to reports, the Treasury's calculations indicate that a government subsidy of 16 agorot per liter, aimed at completely preventing price increases, would cost the state approximately 50 million shekels monthly. This translates to an estimated 100 million shekels until the upcoming elections and around 200 million shekels until a new government is formed, if at all.
Simultaneously, the Ministry is exploring options to reduce gasoline prices by more than the proposed 16 agorot per liter, potentially bringing the price below 8 shekels per liter. Such a move would significantly deepen the scope of government subsidies.
Currently, the Ministry of Finance awaits guidance from legal officials. These officials will assess whether a substantial financial benefit to the public during the election period, beyond the current price freeze, complies with legal standards and can be advanced.
