Israel Subsidizes Fuel Prices Ahead of Elections
Translated & summarized from Cursorinfo by baba
The Israeli government is providing a 300 million shekel subsidy to lower gasoline prices before elections, a move criticized as populist. This intervention comes as global energy prices rise and the dollar strengthens, with critics pointing to the government's failure to implement long-term fuel price stabilization measures.
The story in 5 lines · by baba
- Israel is subsidizing gasoline by 300 million shekels before elections.
- The price per liter will drop to 7.77 shekels from a projected 8.27.
- Critics call the move a populist tactic to win votes.
- The government has not implemented long-term fuel price controls.
- Taxes account for about 51% of the price of gasoline in Israel.
The Israeli government is injecting 300 million shekels to subsidize gasoline prices, a move that will lower the cost per liter to 7.77 shekels, down from a projected 8.27 shekels, just before upcoming elections. This intervention aims to provide financial relief to drivers during the voting period. The decision comes amid rising global energy prices, which increased by 13% last month, and a 3% strengthening of the dollar against the shekel, which had already caused a significant price jump in October. This follows a similar, smaller subsidy of 155 million shekels allocated by Prime Minister Benjamin Netanyahu's cabinet the previous month. Critics, including media and political opponents, are labeling the government's action a populist tactic to gain votes at the expense of state revenue. Public broadcaster Kan highlighted that the current government has failed to establish stable, systemic mechanisms for controlling fuel prices throughout its term. A major obstacle is the tax structure, where state excise duties and taxes constitute approximately 51% of the price of each liter of gasoline in Israel. Despite discussions about reducing the tax burden in August, authorities opted for direct financial injections rather than fundamental reforms, leaving consumers reliant on temporary, election-timed subsidies.
