Israel Extends Fuel Tax Break Amid Rising Gas Prices
Translated & summarized from Cursorinfo by baba
Israel's Finance Minister Bezalel Smotrich extended a reduced excise tax on fuel for one month, limiting an expected November gasoline price hike. While international prices and VAT cuts will lower gas by 42 agorot per liter starting Sunday, the tax break prevents a larger increase. The measure, effective until December 5th, keeps the price at 7.85 shekels per liter instead of 8.35.
The story in 5 lines · by baba
- Finance Minister Bezalel Smotrich extended a fuel tax break until December 5th.
- Gasoline prices will rise to 7.85 shekels per liter, not the projected 8.35 shekels.
- Fuel prices will decrease by 42 agorot per liter starting Sunday due to global market shifts.
- The tax break mitigates a larger price increase expected from ending a previous concession.
- The price reduction is attributed to lower international oil prices and VAT adjustments.
The price of gasoline in Israel is set to increase in the coming days, though a tax break extension will mitigate the rise. Finance Minister Bezalel Smotrich ordered on October 29th to maintain the reduced excise tax rate on fuel for an additional month. This measure aims to partially offset an anticipated November price hike.
According to Calcalist, the extension of the tax relief will limit the gasoline price increase to 7.85 shekels per liter, instead of the projected 8.35 shekels. However, the Ministry of Energy announced that the price of fuel will decrease by 42 agorot per liter starting midnight between Saturday and Sunday. The maximum price for a liter of 95-octane gasoline at stations will be 7.35 shekels, down from the previous 7.77 shekels, a 5.4% reduction.
Without the tax extension, gasoline prices would have risen to 8.35 shekels per liter on Thursday. Smotrich's directive caps the increase at 7.85 shekels. The Ministry of Energy attributed the expected early November price drop primarily to a roughly 13.2% decrease in gasoline prices on international markets. This effect was partially counteracted by a nearly 2% strengthening of the dollar against the shekel.
The reduction in global quotes translates to a 36 agorot decrease per liter in local currency terms. An additional 6 agorot reduction comes from a decrease in VAT, resulting in the total 42 agorot per liter decrease. The Finance Minister's new decree will be in effect until December 5th.
