Israel Seeks to Block Record Fuel Price Hike Amid Election Concerns

The Israeli government is attempting to prevent a record-breaking increase in fuel prices, with the Minister of Finance, Bezalel Smotrich, convening an urgent meeting with senior officials from the Ministry of Finance. The meeting aims to discuss potential measures to halt the price hike, which is expected to raise the cost of a liter of 95-octane gasoline by 52 agorot, reaching an all-time high of 8.27 shekels.

This move follows a similar intervention last month, where a discount of half a shekel per liter was approved for two months. However, officials acknowledge that this latest attempt to control prices faces significant legal challenges due to its proximity to the upcoming elections, which impose restrictions on government actions during this period.

The sharp increase, exceeding initial forecasts of over 40 agorot, is attributed to a combination of factors. Global oil prices have risen by approximately 13%, fueling concerns about supply stability in the international energy market. Additionally, a roughly 3% strengthening of the dollar against the shekel has directly impacted the final consumer price in Israel.

During the planned meeting, Smotrich and his advisors will explore whether a practical and legal framework exists to block the historic price surge at the pump, despite the legal hurdles presented by the election period.