Fuel Prices Jump After Four-Day Discount Ends
Translated & summarized from Ice by baba
Israel's maximum gasoline price will increase by 50 agorot per liter to 7.85 shekels starting Thursday, after a temporary tax reduction expires. The tax cut was halved by Finance Minister Bezalel Smotrich, reversing a recent price decrease. Future prices depend on further tax decisions and international market conditions. The tax relief has cost the state an estimated 136 million shekels.
The story in 5 lines · by baba
- Gasoline prices in Israel will rise by 50 agorot to 7.85 shekels per liter starting Thursday.
- The price increase is due to the expiration of a temporary one-shekel tax reduction.
- Finance Minister Bezalel Smotrich reduced the tax relief to only half a shekel.
- The tax reduction is estimated to cost the state 136 million shekels in lost revenue.
- Future fuel prices will be affected by international markets and the dollar exchange rate.
The price of gasoline in Israel is set to increase by 50 agorot per liter starting midnight Wednesday, rising from 7.35 to 7.85 shekels for self-service 95-octane fuel. This price hike follows the expiration of a temporary tax reduction. For a driver filling a 50-liter tank, the cost will increase by 25 shekels.
This change comes after a brief period of lower prices. Earlier in November, the maximum price dropped by 42 agorot due to a monthly update by the Ministry of Energy. However, this reduction was largely offset by a temporary tax cut of one shekel per liter, which expires today. Finance Minister Bezalel Smotrich signed a new order reducing the tax by only half a shekel, leading to the current price increase.
Without the new order, the maximum price would have reached 8.35 shekels per liter. The future of fuel prices remains uncertain, as the current half-shekel tax reduction is also temporary. The Ministry of Finance will need to decide whether to extend, modify, or end this reduction before the next price update. The final price in December will also be influenced by international gasoline prices and the dollar exchange rate.
The recent price increases have prompted government intervention. In September, the Finance Minister began reducing fuel taxes, with the relief expanded to one shekel per liter in October. Despite a decrease in international gasoline prices at the start of November, the reduction in the tax benefit has led to a net increase. The price starting Thursday will be eight agorot higher per liter than the October price of 7.77 shekels.
The tax reduction has a budgetary cost, estimated to reduce state revenues by approximately 136 million shekels. Drivers who planned to refuel are advised to do so before midnight to save money, with potential savings of 20 to 30 shekels on a typical tank.
