Israel Fuel Prices to Drop November 1, Future Hikes Possible

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The price of 95-octane gasoline in Israel will decrease to 7.35 shekels per liter on November 1. However, without an extension of the excise tax reduction, prices could jump to 8.35 shekels on November 5. Experts suggest the tax break might continue, possibly at a reduced rate. Previous price records and excise tax adjustments are noted, with concerns raised about the budget impact of these measures.

הידיעה ב-5 שורות · תקציר של baba

Israeli gasoline prices will fall to 7.35 shekels per liter on November 1.
Prices could surge to 8.35 shekels on November 5 if excise tax reduction is not extended.
A potential 50% reduction in the tax break could set prices at 7.85 shekels.
The previous record price for 95-octane gasoline was 8.27 shekels per liter in October.
Finance Ministry warned of a 300 million shekel budget impact from tax cuts.

The price of 95-octane gasoline in Israel will decrease by 42 agorot per liter starting Sunday, November 1, bringing the cost to 7.35 shekels, including VAT but excluding service fees. The Ministry of Energy announced this on Thursday, October 29. Service fees will remain unchanged at 26 agorot per liter.

However, if the Finance Minister's order to reduce fuel excise tax is not extended, prices are set to rise to 8.35 shekels per liter on November 5. Experts estimate the tax break may continue for another month, though there's a possibility it could be halved, resulting in a price of 7.85 shekels per liter.

This follows a significant price increase on October 1, when gasoline rose by 52 agorot to a record 8.27 shekels per liter, despite a previous 0.5 shekel excise reduction intended to curb rising costs. After a further 1 shekel excise cut was approved on November 5, the price had dropped to 7.77 shekels.

Ministry of Finance specialists had previously objected to additional excise reductions due to the substantial budget impact, estimated at around 300 million shekels, and a lack of funding sources. They warned of the budgetary consequences of the decision.

The previous record for 95-octane gasoline was 8.25 shekels per liter in September 2012. At that time, Prime Minister Benjamin Netanyahu first proposed fuel excise reductions. The tax discount was later canceled but reinstated in the summer of 2022 by then-Finance Minister Avigdor Lieberman when prices again exceeded 8 shekels, reaching 8.08 shekels, prompting government intervention to temporarily lower the excise rate.