Fuel Prices to Rise Slightly Despite Tax Cut Extension

Gasoline prices in Israel are not expected to surge to 9 shekels per liter next week, but will still cost approximately 8.3 shekels per liter starting Saturday night, marking some of the highest prices ever recorded in the country. The current price stands at 7.77 shekels per liter, following a temporary 1 shekel reduction in fuel tax by Finance Minister Bezalel Smotrich, which costs the state budget 326 million shekels per month. The final price for Saturday night will be announced later today by the Fuel Director at the Ministry of Energy, with an expected increase of about 30 agorot due to rising oil prices, anticipation of further conflict in Iran, and a strengthening dollar following election results. The tax reduction is currently in effect until November 3. The Finance Minister intends to hold a discussion today to approve an extension of this benefit for another month. This extension would bring the total cost of the measure, which began at a half shekel per liter reduction and is now in its third consecutive month, to approximately 800 million shekels deducted from the state budget to date.