Full coverage· Economy· Updated 5 Oct, 11:16

Israel Slashes Fuel Tax, Gasoline Prices to Drop

The price of 95-octane gasoline in Israel decreased by 50 agorot per liter, dropping from a record high of 8.27 shekels to 7.77 shekels at self-service pumps. The reduction took effect at midnight between Sunday and Monday, following a cut in the fuel excise tax.

35 newsrooms · 5 languages · since 4 Oct, 08:34

Plus

Israel Slashes Fuel Tax, Gasoline Prices to Drop — Illustration by baba

Watch · 5 clips

Clips the newsrooms posted about this story. They play from YouTube, Instagram, Telegram, TikTok and X.

YouTube plays free. 3 more with Plus.

What happened

01Gasoline prices in Israel dropped by 50 agorot to 7.77 shekels per liter at self-service pumps starting Monday.
02Finance Minister Bezalel Smotrich signed the order to reduce the fuel excise tax for a period of one month.
03Attorney General Gali Baharav-Miara provided legal approval for the tax cut during the sensitive election period.
04Finance Ministry officials opposed the reduction, warning of a 150 million shekel loss in monthly state revenue.
05The price cut follows a record high of 8.27 shekels per liter recorded just prior to the intervention.
06In Eilat, where VAT is not applied, the self-service price for 95-octane gasoline fell to 6.58 shekels per liter.

Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich agreed on the measure to shield Israeli consumers from rising global fuel costs. The tax cut, which will remain in effect for one month, received legal approval from Attorney General Gali Baharav-Miara. This clearance was necessary because it represents the second tax reduction within a short period and occurs during an election campaign.

While Netanyahu and Smotrich highlighted the strength of the Israeli economy, professional staff within the Finance Ministry opposed the move. Officials warned that the tax cut would deepen the national deficit and result in an estimated loss of 150 million shekels in state revenue for the month.

Summarized by baba from the reports of 14 newsrooms. Updated 6 Oct, 16:56