Israel Cuts Fuel Tax, Lowering Gas Prices by Half a Shekel
Translated & summarized from Walla by baba
The story in 5 lines · by baba
- Israel's fuel tax is being reduced, lowering gas prices by 0.50 shekels per liter.
- The new price for a liter of 95-octane gasoline will be 7.77 shekels.
- The reduction follows a recent record high price of 8.27 shekels per liter.
- The move was approved by the Finance Minister and Prime Minister.
- Legal approval was required due to a second tax cut during an election period.
Effective midnight Sunday, a directive signed by Finance Minister Bezalel Smotrich, in agreement with Prime Minister Benjamin Netanyahu, will reduce the excise tax on gasoline, lowering the price of a liter of 95-octane fuel from 8.27 shekels to 7.77 shekels. This represents a decrease of half a shekel per liter.
"While fuel prices are soaring around the world, we are ensuring they do not rise in Israel," stated Netanyahu and Smotrich. They also highlighted that electricity prices in Israel remain among the lowest in the West due to the development of gas reserves and the promotion of competition in electricity production, attributing this to their responsible navigation of Israel's economy, which they noted is breaking records.
The directive's signing and implementation follow legal approval from Attorney General Gali Baharav-Miara on Thursday. This legal clearance was necessary because it marks the second tax reduction within a short period and during an election period, a situation considered particularly sensitive.
The measure aims to counteract a recent record high in fuel prices, which reached 8.27 shekels per liter for self-service. This surge was attributed to a roughly 13% increase in international gasoline prices and a nearly 3% strengthening of the dollar. The previous tax reduction had been entirely offset by these global and currency fluctuations. The new directive will restore the price to 7.77 shekels per liter for the upcoming month.
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