Israel Considers Deeper Fuel Subsidies Ahead of Elections Amid Record Prices

Israel's Finance Minister Bezalel Smotrich is reportedly considering deepening fuel subsidies to curb rising prices ahead of upcoming elections. The price of gasoline is set to hit a record high of 8.27 shekels per liter starting Thursday, an increase of 52 agorot from the previous update. This new price includes a reduction in excise tax that was implemented for two months, which had previously kept prices lower than they would have been.

Without the existing subsidy, the price would have risen even further. The previous subsidy, approved by Smotrich, cost the state treasury 268 million shekels. Government sources suggest the Finance Minister aims to avoid negative headlines about record fuel costs and may approve additional subsidies, potentially costing hundreds of millions of shekels more.

Last month, fuel prices already rose by 16 agorot, reaching 8.25 shekels per liter, matching a previous record set in September 2012. However, Smotrich's temporary reduction of the excise tax brought the price down to 7.75 shekels per liter. The current discussion involves further measures to mitigate the upcoming price hike, which is scheduled to take effect after the Knesset elections.