Israeli Finance Minister Plans Fuel Price Cut Amid Record Highs

Israeli Finance Minister Bezalel Smotrich intends to sign an order reducing fuel prices by 50 agorot per liter for the upcoming month, according to an announcement from the Ministry of Finance on October 1st. The ministry's legal advisor has indicated no obstacles to the order, as reported by Calcalist. The government's legal counsel must now present their position before the order is published for public review. This move follows a significant surge in fuel costs, which reached a record high of 8.27 shekels per liter overnight after increasing by 52 agorot, or 6.7%. This planned reduction is an extension of a similar measure Smotrich enacted last month. The current one-month price cut is estimated to cost the state budget approximately 150 million shekels. Professional civil servants reportedly oppose the initiative, citing the country's difficult financial situation and warning that tax reductions could lead to increased national debt or future tax hikes. The previous subsidy, lasting two months, cost around 310 million shekels. Fuel prices rose despite a prior excise tax reduction implemented by Smotrich earlier in September, which had temporarily lowered the price to 8.25 shekels per liter. The recent price hike is attributed to a 13% increase in international gasoline prices, driven by rising oil costs and concerns over supply shortages. A roughly 3% strengthening of the dollar against the shekel also contributed to the higher consumer prices in Israel.