Israel Cuts Fuel Tax by 50 Agorot to Combat Inflation
Israeli Finance Minister Bezalel Smotrich signed an urgent decree on Sunday, September 6, 2026, to reduce the "Blue" fuel tax by half a shekel (50 agorot). This measure aims to curb inflation and alleviate the burden of the high cost of living as the holiday season approaches.
The decision will lead to a noticeable decrease in fuel prices. The price of a liter of 95-octane gasoline (self-service) will drop to 7.75 shekels from 8.25 shekels, effective midnight between Sunday and Monday.
The Ministry of Finance stated that this is a temporary measure, lasting for two consecutive months. During this period, the state treasury will absorb the shortfall in tax revenue to support consumers and the transportation sector.
This economic step is being taken at a sensitive political time, amidst sharp disagreements within the government coalition. The Finance Minister seeks to send reassuring messages to the public and businesses before the holiday period, which typically sees increased traffic and fuel consumption.
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