Fuel Prices to Drop by Half a Shekel Per Liter

The price of gasoline in Israel will decrease by 50 agorot per liter at self-service stations starting at midnight on Monday, falling from 8.27 shekels to 7.77 shekels. This reduction follows a recent increase and is a result of an order signed by the Minister of Finance, Bezalel Smotrich, to lower the excise tax on fuel. The new price will be in effect for one month, until early November. This latest tax reduction, following a 50 agorot cut in early September, brings the total excise tax reduction to one shekel per liter, amounting to a monthly cost of 300 million shekels for the state. Despite the price cut, the Treasury's Budget Department, the Chief Economist's office, and the Tax Authority had opposed the measure. These professional departments argued that the excise tax serves positive purposes, such as discouraging polluting consumption and contributing to state revenue. They warned that reducing it during a period of deep budget deficit would exacerbate the deficit and necessitate increases in other, more impactful taxes.