Israel Plans Additional Fuel Subsidy Amid Global Energy Crisis

Israeli Finance Minister Bezalel Smotrich has instructed ministry professionals to prepare for an additional subsidy on gasoline prices in response to a projected price hike and the global energy crisis. The decision comes after it was announced that the price of 95-octane gasoline would increase by 52 agorot per liter starting Thursday midnight, reaching 8.27 shekels per liter for self-service. The additional charge for full service will remain unchanged at 26 agorot per liter.

Smotrich held a meeting with ministry officials to address the anticipated price increase, aiming to mitigate the impact on consumers. The exact amount of the subsidy has not yet been determined and will be finalized after professional assessments are completed. The minister stated that the subsidy is necessary to support economic growth, maintain price stability, and prevent the fuel price increase from triggering inflation in other sectors.

The Ministry of Energy and Infrastructure's Fuel and Gas Administration explained that the price surge is attributed to a combination of rising global oil prices, a strengthening dollar, and the expiration of a temporary 50-agora per liter reduction in excise duty, which ends in late October. A price increase is also expected in Eilat, where the maximum price for 95-octane gasoline will rise by 44 agorot to 7.01 shekels per liter, excluding VAT, with full service costing an additional 22 agorot per liter.