Israel Approves 50 Agorot Per Liter Fuel Tax Cut to Curb Price Hikes
Translated & summarized from Makan by baba
Israel's Ministry of Finance has approved a 50 agorot per liter tax cut on gasoline until the end of November to counter expected price hikes. The self-service price will be 7.85 shekels per liter. A separate, temporary reduction to 7.35 shekels will take effect this weekend. The move comes despite professional warnings within the ministry about the impact on the budget deficit.
The story in 6 lines · by baba
- Israel's Ministry of Finance approved a 50 agorot per liter fuel tax cut until November 30.
- The self-service gasoline price will be set at 7.85 shekels per liter after the tax reduction.
- A separate, temporary price drop to 7.35 shekels per liter will begin this Saturday night.
- A previous tax reduction order expires November 4, potentially raising prices to 8.35 shekels.
- The tax cut aims to mitigate expected price increases at the start of next month.
- The decision was made despite professional concerns about the budget deficit.
Israel's Ministry of Finance approved a 50 agorot per liter tax reduction on gasoline, effective until the end of November. This measure aims to mitigate anticipated price increases at the beginning of next month. Finance Minister Bezalel Smotrich is expected to sign the order after a public comment period. The self-service gasoline price is set to be 7.85 shekels per liter.
Separately, the Ministry of Energy and Infrastructure announced that the price of gasoline will drop to 7.35 shekels per liter starting Saturday night, a decrease of 42 agorot from the current price of 7.77 shekels. However, this reduction is temporary, as a previous tax reduction order, which lowered the price by one shekel, expires on November 4. Without a new order, the maximum price for a liter of gasoline could rise to 8.35 shekels on November 5.
The new tax cut is intended to limit this potential rise, bringing the self-service price down to 7.85 shekels instead of 8.35 shekels once the reduction order is officially signed. Earlier in November, gasoline prices were reduced by half a shekel to 7.77 shekels per liter under a previous order signed by the Finance Minister, resulting in an estimated tax revenue loss of approximately 150 million shekels. This decision was made despite warnings from the professional level of the Ministry of Finance regarding the impact of tax reductions on the budget deficit.
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