Israel to Temporarily Cut Fuel Prices by 50 Agorot
Translated & summarized from Vesty by baba
The story in 5 lines · by baba
- Israel to cut gasoline prices by 50 agorot per liter for one month.
- The reduction follows a recent record high price of 8.27 shekels per liter.
- The measure is temporary and will end shortly after upcoming elections.
- The total excise tax reduction will reach one shekel per liter.
- Finance ministry professionals oppose the cut due to budget costs.
Israel is planning to reduce the price of gasoline by an additional 50 agorot per liter starting next week. This temporary measure is slated to last for one month, concluding shortly after the upcoming elections. On Thursday, October 1, the Legal Advisor to the Government, Gali Baharav-Miara, confirmed there were no legal obstacles to implementing the reduction. The draft order will now be published for public comment.
The decision follows a significant recent increase in fuel prices. On the night of October 1, 2026, the price of gasoline rose by 52 agorot, reaching a record high of 8.27 shekels per liter. This price already includes a 50-agorot excise tax reduction that was introduced last month; without it, the price would have been 8.77 shekels.
The new reduction will be added to the existing one, bringing the total excise tax reduction to one shekel per liter. However, the current price will not immediately drop by a full shekel, as the initial 50-agorot reduction is already factored into the existing rate. Minister of Finance Bezalel Smotrich intends to sign the relevant decree after public comments are reviewed. Previously, the legal advisor to the Ministry of Finance and subsequently the government's legal advisor both stated that Smotrich had the authority to proceed.
The previous excise tax reduction, implemented by Smotrich to curb rising fuel costs, cost the budget approximately 310 million shekels over two months. The additional reduction is estimated to cost around 150 million shekels for the month it is in effect. Ministry of Finance professionals have opposed the new reduction, citing its high cost to the budget and the lack of identified funding sources. They warned Smotrich of the budgetary consequences of further excise cuts.
After the temporary reduction expires, the fuel price will be influenced by global market conditions. It remains uncertain whether global fuel prices will decrease within the next month.
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