Israel Extends Fuel Tax Break, Averting Price Hike
Translated & summarized from Cursorinfo by baba
Israeli drivers will avoid a fuel price increase after Finance Minister Bezalel Smotrich extended a tax reduction. The 50 agorot per liter excise tax break will remain in effect until the end of November, keeping the price at 7.85 shekels. This decision prevents a rise to 8.35 shekels per liter, which was expected due to the expiration of a previous, larger tax benefit. Global fuel prices and the dollar exchange rate also impact gasoline costs.
The story in 5 lines · by baba
- Finance Minister Bezalel Smotrich extended a fuel tax break, preventing a price hike.
- The 50 agorot per liter excise tax reduction will last until the end of November.
- Gasoline prices will remain at 7.85 shekels per liter, avoiding an increase to 8.35 shekels.
- A previous tax benefit of one shekel per liter had expired.
- Global fuel prices and the dollar exchange rate influence gasoline costs in Israel.
Drivers in Israel will not face an immediate increase in gasoline prices, as Finance Minister Bezalel Smotrich extended a tax reduction at the last minute. The price of fuel and the associated excise tax have been a subject of ongoing debate in Israel. On Wednesday, November 4, it was anticipated that the maximum price for a liter of gasoline (95 octane) would exceed 8 shekels at midnight due to the expiration of a temporary excise tax reduction order. However, Smotrich signed a decision to prolong the tax concession. The 50 agorot per liter reduction on gasoline will remain in effect for an additional 26 days, through the end of November. This measure is intended to mitigate the expected price rise following the previous order's expiry. Consequently, the fuel price will remain at 7.85 shekels per liter for the coming weeks. The price of gasoline had already been adjusted earlier in November, decreasing by 42 agorot following a monthly review by the Ministry of Energy. At that time, a temporary tax benefit of one shekel per liter was still active, making fuel cheaper for consumers. This benefit was set to expire on Wednesday. Instead of the previous order, the new directive from the Finance Minister provides a reduction of only 50 agorot per liter. Without this extension, drivers would have faced a 50 agorot increase, bringing the maximum gasoline price to 8.35 shekels per liter. These recent changes are part of the Finance Ministry's tax policy on fuel. Smotrich had begun reducing the excise tax on gasoline in September, and the benefit was increased to one shekel per liter in October. However, global factors such as fuel prices in the Mediterranean region and the dollar exchange rate continue to influence gasoline costs in Israel. Although international markets saw a decrease in gasoline prices before November, which helped lower the retail price at the beginning of the month, the reduction in the tax benefit has now outweighed this positive effect. As a result, the price was expected to rise to 7.85 shekels per liter starting Thursday, an increase of 8 agorot from the October price of 7.77 shekels.
