Fuel Prices to Drop by Half a Shekel as Tax Cut Takes Effect

Drivers in Israel will see a reduction in gasoline prices starting tonight at midnight, as a decision to lower the excise tax on fuel by 0.5 shekels per liter comes into effect. The measure, which will be signed into order by Finance Minister Bezalel Smotrich with the approval of the legal advisor to the government, aims to bring down the price of gasoline after it reached a historic high of 8.25 shekels per liter. This tax reduction is scheduled to remain in place until October 31, 2026.

The price cut follows a recent increase on September 1, when fuel prices rose by 16 agorot, matching a previous record high set in September 2012. Bat Sheva Abuhazira, director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, explained that several factors contributed to the recent price surge. These included a roughly 6% increase in international gasoline prices, partially offset by a 3% decrease in the dollar's exchange rate, resulting in an overall increase of about 10 agorot per liter due to these combined market fluctuations.