Israel's Fuel Prices Hit Record High, Finance Minister Seeks New Tax Cut

The price of gasoline in Israel reached an all-time high of 8.27 shekels per liter for self-service 95 octane fuel on Tuesday, a 52 agorot increase from September's price of 7.75 shekels. This surge, driven by rising global oil prices and a strengthening dollar, has erased the previous tax reduction implemented by Finance Minister Bezalel Smotrich. The previous record price was 8.25 shekels per liter, set in September 2012.

In response to the latest price hike, Smotrich is proposing another 50 agorot per liter reduction in excise tax for one month. If approved, this would bring the price down to approximately 7.77 shekels per liter, close to September's rate. However, the measure requires approval from the Attorney General, following a legal review by the Finance Ministry's legal counsel which found no objection to the reduction.

The process involves publishing the proposed order for public comment before the Finance Minister can sign it. This is the second tax reduction attempt in a short period, occurring during an election campaign, making the legal aspect particularly sensitive. Last month, a similar 50 agorot reduction was approved after receiving legal clearance.

Until the new reduction is finalized and approved, drivers will continue to pay the record-high price of 8.27 shekels per liter. The Finance Ministry confirmed its intention to pursue the reduction, pending public review and the Attorney General's final decision.