Fuel Tax Cut Extended But Price Set to Rise
Translated & summarized from Walla by baba
Israeli Finance Minister Bezalel Smotrich extended a fuel tax cut but reduced the benefit, leading to a price increase of 8 agorot per liter to NIS 7.85. The move will save the state NIS 150 million and is in effect until the end of November. Potential U.S. strikes on Iran could further raise oil prices in December.
The story in 5 lines · by baba
- Fuel excise tax cut extended by Finance Minister Bezalel Smotrich until November end.
- Fuel price will increase by 8 agorot to NIS 7.85 per liter due to reduced tax benefit.
- The tax benefit reduction will save the state treasury NIS 150 million.
- The measure is timed to align with the next fuel price update in early December.
- Potential U.S. strikes on Iran could cause oil prices to surge again in December.
Finance Minister Bezalel Smotrich has extended the reduction in fuel excise tax, known as "blue" tax, but has decreased the benefit from one shekel to 50 agorot per liter. This adjustment means the price of fuel, currently at NIS 7.77 per liter, will increase by 8 agorot to NIS 7.85. The reduction in the tax benefit is expected to save the state treasury NIS 150 million.
The measure will be in effect for 26 days, until the end of November. This timing is intended to align the tax change with the next fuel price update in early December, coinciding with updated global oil prices. Analysts anticipate that if U.S. President Donald Trump orders new strikes on Iran, oil prices could surge again, impacting drivers' expenses in December.
