Fuel Prices to Drop by 50 Agorot as Tax Cut Takes Effect

The price of gasoline in Israel will decrease by 50 agorot per liter starting at midnight, bringing the cost down to 7.77 shekels. This reduction follows a previous cut and is due to a further reduction in excise tax by the Minister of Finance, Bezalel Smotrich. The price had previously reached a record high of 8.27 shekels per liter last week, after peaking at 8.25 shekels the month before. A month ago, Smotrich intervened by reducing the excise tax by 50 agorot, which lowered the price to 7.75 shekels. The current reduction, also 50 agorot, brings the total cumulative reduction in excise tax to one shekel over the past month and the current one. Both reductions are valid until next month. Analysts anticipate a significant drop in fuel prices in November, potentially eliminating the need for further tax interventions, though this depends on global fuel market trends. The rising fuel costs have broader economic implications, affecting transportation, shipping, and business operating expenses, which could ultimately impact consumer prices for goods and services.