Israel Considers Fuel Subsidy Amid Global Energy Crisis

Israeli Finance Minister Bezalel Smotrich has instructed his ministry's professionals to prepare for an additional subsidy on fuel prices in an effort to curb a recent surge in consumer costs, driven by the global energy crisis. The move comes shortly after a previous reduction in fuel prices, which cost the state approximately 300 million shekels per month. That prior reduction had brought the price down to about 7.75 shekels per liter.

However, the price has since climbed again. According to the Ministry of Energy's Fuel and Gas Administration, the maximum price for a liter of 95-octane unleaded gasoline at self-service stations will rise by 52 agorot to 8.27 shekels per liter later this week. Smotrich stated that the subsidy is intended to boost economic growth, maintain price stability, and prevent inflation across various sectors of the Israeli economy.

Following professional assessments, the minister will finalize the details and scope of the planned reduction. The previous subsidy, implemented after a significant price drop, was estimated to cost the state budget around 300 million shekels monthly. The current price increase follows that reduction, which had set the price at approximately 7.75 shekels per liter.