Israel Extends Fuel Tax Subsidy to Prevent Price Hike
Translated & summarized from i24NEWS by baba
Israel's Ministry of Finance will extend a fuel tax subsidy for 26 days to prevent a price increase next week. The subsidy will keep self-service gasoline at 7.85 shekels per liter. The move aims to counter a projected rise to 8.35 shekels due to global oil price hikes. The extension is expected to be finalized by the Finance Minister.
The story in 6 lines · by baba
- Israel's Finance Ministry will extend a fuel tax subsidy for 26 days.
- The subsidy aims to prevent a gasoline price hike next week.
- Self-service gasoline prices will remain at 7.85 shekels per liter.
- The previous subsidy of one shekel per liter expires November 4.
- Global oil prices have risen sharply to $114 per barrel.
- Tensions between Israel, the US, and Iran are cited as a factor in oil price increases.
Israel's Ministry of Finance announced Friday its intention to extend the excise tax subsidy on gasoline for an additional 26 days, through the end of November. This measure aims to prevent a significant price increase expected next week. The ministry published the order for public comment, after which Finance Minister Bezalel Smotrich is expected to sign it.
Under the new order, the subsidy will reduce the excise tax by 50 agorot per liter. This is intended to keep the self-service gasoline price at 7.85 shekels per liter. The previous subsidy of one shekel per liter is set to expire on November 4.
The ministry stated that the new order is designed to mitigate the price jump scheduled for November 4. Without the extension, the price of gasoline was projected to rise to 8.35 shekels per liter, with an additional 26 agorot for full service.
This decision comes amidst a sharp rise in global oil prices, with a barrel currently costing around $114. This surge is attributed to increasing tensions and fears of further escalation between Israel, the United States, and Iran, pushing oil prices back to levels seen six months ago.
