Israel Fuel Prices to Rise in November Despite Tax Cut
Translated & summarized from Mignews by baba
Israeli fuel prices will rise to 7.85 shekels per liter starting November 5, following Finance Minister Bezalel Smotrich's decision to extend a fuel excise tax reduction for one month. This measure mitigates a larger projected increase to 8.35 shekels. The tax reduction decree is valid until December 5.
The story in 5 lines · by baba
- Fuel prices in Israel will increase to 7.85 shekels per liter starting November 5.
- Finance Minister Bezalel Smotrich extended a fuel excise tax reduction for one month.
- The tax reduction aims to prevent a larger price hike to 8.35 shekels per liter.
- The extended tax reduction decree is in effect until December 5.
- International gasoline prices fell by 13.2%, but dollar strength partially offset the decrease.
Fuel prices in Israel are set to increase in November, despite a one-month extension of a reduced excise tax on fuel signed by Finance Minister Bezalel Smotrich on October 29. The measure aims to soften the expected price hike for drivers.
Without the intervention, gasoline prices were projected to jump to 8.35 shekels per liter. However, the extended tax reduction will limit the increase to 7.85 shekels per liter, according to Calcalist. This new price is effective from November 5 and the decree expires on December 5.
Earlier, the Ministry of Energy had announced a decrease in fuel prices for the period of November 1 to November 4, with a reduction of 42 agorot per liter. This would have set the maximum price for 95-octane gasoline at 7.35 shekels per liter, down from 7.77 shekels.
The ministry attributed the initial price drop primarily to a 13.2% decrease in international gasoline prices, partially offset by a 2% strengthening of the dollar against the shekel. The international price reduction accounted for 36 agorot per liter, with an additional 6 agorot reduction from VAT, totaling the 42 agorot decrease.
