Israel Approves Fuel Tax Cut Ahead of Elections

Israeli drivers will see a slight decrease in gasoline prices starting midnight on September 7, following Finance Minister Bezalel Smotrich's approval of a fuel excise tax reduction. The government's decision sets the maximum price for a liter of 95-octane gasoline at 7.75 shekels. This move to lessen the tax burden on fuel received a legal go-ahead from Attorney General Gali Baharav-Miara. However, the price reduction has sparked political debate. There were concerns that Baharav-Miara might block the decision, viewing it as a pre-election tactic, similar to an incident in 2022 when then-Finance Minister Avigdor Lieberman attempted a similar cut before elections. The current decision comes less than two months before the October 27 Knesset elections, inevitably lending a political dimension to the fuel price decrease. While the reduction offers savings for drivers, it is achieved through a state subsidy on fuel costs. Despite the recent drop following a sharp price increase, fuel remains relatively expensive for Israeli motorists.