Fuel Prices to Drop by 42 Agorot, New Rate Set at 7.35 Shekels
Translated & summarized from Ynet by baba
Gasoline prices in Israel will drop by 42 agorot to 7.35 shekels per liter starting Sunday, due to a tax reduction. The tax cut is expected to continue next week, though possibly at a reduced rate. The government has already spent nearly 500 million shekels on these reductions, with further cuts costing hundreds of millions.
The story in 5 lines · by baba
- Fuel prices will decrease by 42 agorot to 7.35 shekels per liter starting Sunday.
- The tax reduction on fuel is expected to continue next week to prevent price hikes.
- Minister of Finance Bezalel Smotrich is discussing the continuation of the tax cut.
- Previous tax reductions have cost the state nearly 500 million shekels.
- A full shekel tax reduction costs the budget about 300 million shekels.
The price of gasoline in Israel will decrease by 42 agorot starting midnight Saturday, setting the new price at 7.35 shekels per liter. This reduction is due to a temporary tax cut. If the order is not renewed, the price could rise to a maximum of 8.35 shekels per liter after November 5th. The additional charge for full service will remain unchanged at 26 agorot per liter, including VAT.
Estimates suggest the tax reduction on fuel will likely continue into the following week to prevent a significant price surge. However, due to the high cost of this measure, the tax may be reduced by only half a shekel instead of a full shekel. Minister of Finance Bezalel Smotrich has discussed this matter with senior ministry officials.
Previously, in early October, Smotrich prevented the price of 95-octane self-service gasoline from reaching a new record of 8.77 shekels by extending the tax reduction order and doubling it to a full shekel, compared to a half-shekel reduction in September. This set the self-service price at 7.77 shekels per liter. The tax reductions to date have cost the state nearly half a billion shekels. Each additional full shekel reduction is estimated to cost the state budget approximately 300 million shekels, while a reduction of half a shekel would cost 150 million shekels.
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