Fuel Prices to Drop Slightly in Early November, Future Uncertain

The price of a liter of 95-octane gasoline in Israel is set to decrease by 42 agorot, reaching 7.35 shekels starting in November. This price is comparable to levels seen in June and July. The reduction is partly due to a temporary excise tax cut that is currently in effect.

However, this lower price is expected to be short-lived. The current excise tax reduction is set to expire on November 5th. If the measure is not extended, the maximum price for a liter of gasoline could surge to 8.35 shekels by November 5th. The additional charge for full service will remain unchanged at 26 agorot per liter.

Despite the upcoming decrease, the price remains high compared to recent months. In September, fuel prices jumped to 8.25 shekels per liter, a level not seen since 2012. Following this increase, Finance Minister Bezalel Smotrich implemented a half-shekel per liter excise tax reduction for two months, bringing the price down to 7.75 shekels.

In October, prices rose again to 8.27 shekels per liter, even with the tax reduction. Smotrich then extended the reduction for another month, resulting in a price of 7.77 shekels. Senior officials indicate that the Finance Minister is considering another extension of the excise tax cut, with a decision expected soon. This decision involves balancing the state's budget with the impact of rising fuel costs on the public.