Israel to Cut Fuel Prices by Half a Shekel Next Week

The Israeli Ministry of Finance announced that fuel prices will be reduced by half a shekel per liter starting early next week. The price cut is set to take effect at midnight between Sunday and Monday, following the signature of Finance Minister Bezalel Smotrich on the relevant order. This measure comes after the price of gasoline reached a record high of 8.25 shekels per liter.

The decision to lower the price was made despite the ongoing election period, with the Attorney General having approved the move. The price increase that prompted this reduction was announced by the Ministry of Energy on Sunday, citing rising international oil prices and an automatic adjustment to excise taxes as the primary reasons. The excise tax adjustment alone contributed 5 agorot to the price hike.

Initially, Ministry of Finance professionals reportedly opposed the reduction due to the significant impact on state revenue. Estimates suggest that a 10 agorot reduction per liter would result in a monthly loss of approximately 30 million shekels, escalating to about 150 million shekels per month for the planned 50 agorot cut. Despite these financial concerns, the Attorney General's approval allows the measure to proceed.