Fuel Prices to Rise Despite Tax Cut as Benefit is Reduced
Translated & summarized from Hamal by baba
Fuel prices in Israel will rise by 8 agorot to 7.85 shekels per liter despite an extended tax reduction. Finance Minister Bezalel Smotrich reduced the tax benefit to 50 agorot, saving the state 150 million shekels. The measure lasts until the end of November, with potential further price hikes in December due to global oil market volatility and US-Iran tensions.
The story in 5 lines · by baba
- Fuel prices in Israel will increase by 8 agorot to 7.85 shekels per liter.
- Finance Minister Bezalel Smotrich reduced the fuel tax benefit to 50 agorot per liter.
- The tax reduction extension is expected to save the state treasury 150 million shekels.
- The adjusted tax benefit will be in effect until the end of November.
- Global tensions and potential US strikes on Iran could cause further fuel price increases.
Despite an extension of a fuel tax reduction, the price of gasoline in Israel is set to increase by 8 agorot per liter, reaching 7.85 shekels. The reduction in the fuel excise tax (Blue) was extended by Finance Minister Bezalel Smotrich, but the benefit was decreased from its previous level to 50 agorot per liter. This move is expected to save the state treasury 150 million shekels.
The adjusted tax benefit will be in effect for 26 days, until the end of November. This timing is intended to align the tax adjustment with the next fuel price update in early December, which will reflect current global oil prices.
Global tensions, particularly in the Persian Gulf with ongoing high alert and US force buildup, could further impact fuel costs. If US President Donald Trump orders new strikes on Iran, oil prices are expected to surge again, which would be felt by drivers in early December.
