Fuel Prices Set for Dramatic Drop After Recent Record High

Fuel prices in Israel are poised for a significant reduction, just four days after reaching a record high. The Ministry of Finance has announced a decree to lower excise tax on gasoline for one month, a move intended to counteract the recent surge.

The decree was published for public comment, with the deadline for submissions being Sunday. Following the review of these comments, Finance Minister Bezalel Smotrich is expected to sign the decree, which would take effect at midnight on Monday. This reduction is anticipated to lower the price of gasoline by approximately 50 agorot per liter, bringing it down to 7.77 shekels from the current 8.27 shekels.

The excise tax on a liter of gasoline will be reduced to 2.73 shekels under the decree. This comes after a 6.7% increase in fuel prices last week, which pushed the cost to a record 8.27 shekels per liter. This marks the second consecutive reduction in excise tax, following a similar measure in early September.

According to the Ministry of Finance, these excise tax reductions result in an accumulated revenue loss of about 500 million shekels. The current tax reduction is valid until the end of October. The ministry issued the decree after the Attorney General's office approved the ministry's legal counsel's opinion, which permitted the action despite it being an election period and the second consecutive reduction.