Israel Approves Fuel Tax Cut Amid Record High Prices
Translated & summarized from i24NEWS by baba
Israel's Ministry of Justice approved a 0.50 shekel per liter reduction in fuel excise tax, following a request from Finance Minister Bezalel Smotrich. This decision comes as gasoline prices hit a 14-year high due to global energy issues and security tensions.
The story in 5 lines · by baba
- Israel approved a 0.50 shekel per liter fuel tax cut.
- The reduction follows a request from Finance Minister Bezalel Smotrich.
- Fuel prices recently reached a 14-year high of 8.25 shekels per liter.
- Global energy crisis and security tensions contributed to price hikes.
- Legal discussions addressed the timing of the tax cut during elections.
Following a request from Finance Minister Bezalel Smotrich, the Ministry of Justice approved a reduction of half a shekel per liter on fuel excise tax on Wednesday. The decision came after legal discussions regarding the legality of such a price reduction during an election period.
The move aims to alleviate the burden on consumers after fuel prices in Israel reached a 14-year high of 8.25 shekels per liter for self-service gasoline. This recent surge follows a significant increase of 61 agorot (less than a shekel) per liter last month.
The overall rise in fuel costs is attributed to the global energy crisis and ongoing security tensions with Iran. Initially, some within the Finance Ministry opposed the tax cut, but the Ministry of Justice ultimately granted approval.
Bat-Sheva Abuhazira, director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, explained that several factors contributed to the latest price increase. The international price of gasoline rose by approximately 6%, partially offset by a 3% decrease in the dollar exchange rate, resulting in an estimated 10 agorot per liter increase due to these combined market fluctuations.
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