Fuel Prices to Drop by Half Shekel Next Week

The Israeli Ministry of Finance announced that an order to reduce excise tax on fuel by half a shekel (50 agorot) will take effect at midnight between Sunday and Monday. This reduction will bring the price of a liter of 95-octane gasoline at self-service stations to NIS 7.75.

The move was initiated by Finance Minister Bezalel Smotrich and has faced criticism, with some alleging it is "election economics." However, the measure has passed the ministry's legal counsel and received approval.

This price decrease follows a recent increase of 16 agorot, which had pushed the price of a liter of unleaded 95-octane gasoline at self-service stations to a record NIS 8.25.

Officials from the Ministry of Energy and Infrastructure explained that the previous price hike was due to several factors. These included a global increase in gasoline prices of approximately 6%, partially offset by a roughly 3% weakening of the dollar, contributing about 10 agorot to the price. Additionally, a tax authority update to the excise component based on an index added about 5 agorot, and a semi-annual adjustment to the marketing margin added one agora, resulting in the total 16-agorot increase.