Israel to Lower Gas Prices as Excise Tax Reduced
Translated & summarized from Mignews by baba
The story in 5 lines · by baba
- Gasoline prices in Israel will drop to 7.77 shekels per liter on October 5.
- The price decrease is due to a reduction in the excise tax.
- The measure is temporary and set to expire after the upcoming elections.
- The government expects a 150 million shekel budget revenue shortfall.
- Some finance ministry specialists opposed the tax cut due to budget risks.
The maximum price for a liter of 95-octane gasoline at self-service stations in Israel will decrease by 50 agorot to 7.77 shekels starting October 5. The Ministry of Finance announced that this reduction is possible due to a further decrease in the excise tax. This follows a similar 50 agorot tax cut implemented in September.
The legal advisors to the Ministry of Finance and the government have stated there are no obstacles to the Minister of Finance, Bezalel Smotrich, signing the relevant decree, even with elections approaching. Once enacted, the excise tax will be approximately 2.73 shekels per liter.
The Ministry of Finance estimates this measure will reduce state budget revenues by about 150 million shekels. Israeli economic publications have noted the temporary and pre-election nature of this decision, as the reduced excise tax is set to expire at the end of October, immediately after the election campaign concludes.
Some specialists within the Ministry of Finance reportedly opposed the additional tax reduction, citing budget risks.
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