Israel Fuel Prices Surge Despite Government Intervention
Translated & summarized from Cursorinfo by baba
Israeli drivers are facing higher fuel costs as the price of 95-octane gasoline rose to 7.85 shekels per liter. Minister of Finance Bezalel Smotrich implemented a temporary 50 agorot per liter excise tax reduction to soften the impact. This measure will last for 26 days, and drivers face potential further price hikes in December.
The story in 6 lines · by baba
- Israeli gasoline prices increased by 50 agorot to 7.85 shekels per liter.
- Minister of Finance Bezalel Smotrich enacted a temporary 50 agorot excise tax reduction.
- The government subsidy for gasoline was halved, from one shekel to 50 agorot per liter.
- The new tax reduction is temporary and will last for 26 days, until the end of November.
- The state expects to lose approximately 136 million shekels due to the tax reduction.
- Drivers face an additional 25 shekels cost to fill a 50-liter car tank.
Israeli drivers are facing a significant increase in fuel prices, with the cost of a liter of 95-octane gasoline reaching 7.85 shekels at self-service stations. This represents a 50 agorot increase from the beginning of the month. The price hike is attributed to the expiration of a previous decree that reduced excise tax, effectively subsidizing each liter of gasoline by one shekel. Without this subsidy, drivers would have fully experienced the impact of rising global oil prices and currency fluctuations.
In an effort to mitigate a sharp price jump, Israeli Minister of Finance Bezalel Smotrich issued a new decree reducing the excise tax by 50 agorot per liter. This effectively halved the government subsidy from one shekel to 50 agorot, only partially softening the price increase. Had the minister not intervened, the price would have reached 8.25 shekels per liter, a level not seen in Israel for a long time. The Ministry of Finance stated the measure aims to cushion the impact on motorists and prevent economic shock, emphasizing its temporary nature.
The new decree is set to last for 26 days, until the end of November. The increased cost is already impacting Israeli families, with filling a 50-liter car tank now costing 25 shekels more. Attention will return to the Ministry of Finance at the end of the month to determine if the temporary tax break will be extended or if drivers will face further price increases in December, potentially pushing the price closer to 8 shekels per liter.
The tax reduction also has budgetary implications, with an estimated loss of approximately 136 million shekels in state revenue. For drivers, the practical concern remains whether the remaining subsidy will be sufficient to offset future price changes.
