Israel Gas Prices Hit Record High Amid Global Market Fluctuations
Translated & summarized from Mignews by baba
The story in 4 lines · by baba
- Israeli gas prices reached a record 8.27 shekels per liter on October 1.
- A temporary excise tax reduction expired, contributing to the price hike.
- Global oil prices and currency fluctuations are blamed for the increase.
- New subsidy mechanisms are being explored by the Finance Ministry.
Gasoline prices in Israel reached a new record high on October 1, 2026, with the cost of a liter of 95-octane fuel at self-service stations rising by 52 agorot to 8.27 shekels. This price increase affects all regions of the country, though Eilat, which is exempt from Value Added Tax, saw a maximum price of 7.01 shekels per liter. The additional fee for full-service at gas stations remains unchanged at 26 agorot per liter.
The fuel price situation has been tense for months. In early September, Finance Minister Bezalel Smotrich ordered a 50-agorot per liter reduction in fuel excise tax, a measure taken when prices neared 8.25 shekels. This temporary relief kept prices at 7.75 shekels per liter, but the tax break has now expired.
At the end of September, the Finance Ministry was instructed to explore new subsidy mechanisms to cushion the impact on consumers and curb further price increases. However, these measures have not yet been implemented, leading to the current record-high prices.
Experts attribute the surge in fuel costs to rising global oil prices and fluctuations in the national currency's exchange rate.
Read the original at Mignews
