Fuel Prices in Israel Poised to Drop Below 8 Shekels Per Liter

Drivers in Israel are expected to see a significant reduction in fuel costs starting next week, as the Ministry of Finance is advancing an urgent measure to lower the excise tax on gasoline by 0.50 shekels per liter. This move comes after the price of gasoline reached a high of 8.25 shekels per liter on September 1st, the highest since 2012. The decree has been published for public comment, and upon its conclusion this coming Sunday, Finance Minister Bezalel Smotrich is expected to sign it into effect. The price adjustment will take place at midnight between Sunday and Monday. If implemented as planned, the price of gasoline is projected to fall below the psychological threshold of 8 shekels, settling around 7.75 shekels per liter. This reduction could save drivers tens of shekels monthly on regular refueling, depending on their travel habits.

However, this relief arrives amidst considerable uncertainty in the international energy market. Military developments in the region and attacks involving Iran continue to impact global oil prices. Any further fluctuations, coupled with changes in the dollar exchange rate and benchmark European fuel prices, could potentially alter the trend and affect the final consumer price in Israel in the future.