Israel Fuel Prices May Rise as Tax Break Expires
Translated & summarized from Mignews by baba
Fuel prices in Israel are expected to rise by about 1 shekel per liter on November 1, as a temporary tax reduction expires. Finance Minister Bezalel Smotrich has not yet approved extending the tax break, which costs the state 300 million shekels monthly. The potential increase could add 50 shekels to a typical 50-liter fuel tank refill and impact transportation costs.
The story in 5 lines · by baba
- Fuel prices in Israel may increase by approximately 1 shekel per liter on November 1.
- A temporary government tax reduction on fuel is set to expire at midnight on October 31.
- Finance Minister Bezalel Smotrich has not yet approved extending the tax break.
- Maintaining the tax break would cost the state treasury about 300 million shekels monthly.
- A 50-liter fuel tank refill could become 50 shekels more expensive for car owners.
The retail price of 95-octane gasoline in Israel is at risk of a significant increase starting November 1, as a temporary government tax reduction on fuel is set to expire at midnight on October 31. Currently, drivers pay 7.77 shekels per liter at self-service pumps. If the state excise tax rate returns to its previous level, the price per liter could increase by approximately 1 shekel.
Finance Minister Bezalel Smotrich has not yet approved the extension of the current tax conditions for the upcoming month. According to economic services, maintaining the preferential rate would require approximately 300 million shekels monthly from the state treasury. The Finance Minister has not yet signed an order to allocate budget funds for price stabilization.
Financial analysts note that tariff revisions typically consider global commodity price fluctuations and the current exchange rate of the Israeli shekel against the US dollar, in addition to domestic excise taxes. Currency exchange rate instability could further impact the final fuel cost. This potential price hike would impose a considerable financial burden on households and the commercial sector. A standard 50-liter fuel tank refill could become 50 shekels more expensive for car owners if the price rises as projected.
Professional transporters have also warned of increased costs for delivering consumer goods nationwide. Ministry of Finance officials will continue consultations on budget reserve allocation through the end of the current week. The final decision by relevant departments will determine the official price list at all Israeli gas stations on the night of November 1. If no new directive is issued, the fuel authority's office will automatically publish the increased tariffs.
