Israel Plans Fuel Price Cut Amid Recent Surge

The price of gasoline in Israel surged by 52 agorot per liter overnight, reaching 8.27 shekels, effective midnight. This increase follows a previous rise last month and comes on top of an existing 50 agorot reduction in excise tax. The Ministry of Finance is now working to implement a further 50 agorot cut in excise tax for the upcoming month, aiming to lower gasoline prices for consumers. This proposed reduction is currently under review and requires necessary approvals.

The Ministry of Finance's legal counsel has indicated no objection to the proposed price reduction. The next step involves obtaining the opinion of the Attorney General. Once that is received, the decree for the reduction can be published for public comment. Finance Minister Bezalel Smotrich intends to sign off on a 50 agorot per liter reduction for one month, pending public feedback and procedural completion.

If approved, this new reduction, combined with the previous one, will amount to a total of one shekel per liter reduction. This would bring the expected price of gasoline down to approximately 7.77 shekels per liter. The government anticipates this measure will cost the state budget around 1.2 billion shekels, as it absorbs part of the price increase through tax cuts.

Officials hope this intervention will stabilize fuel prices next month and prevent them from exceeding the 8-shekel mark again. The successful implementation of this reduction hinges on completing the necessary procedures in time for the upcoming month.