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Israel's Manufacturers Demand Diesel Tax Cut Amid Soaring Prices
The Manufacturers Association of Israel is calling on Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to cut the excise tax on diesel fuel by one shekel per liter, including VAT. The demand follows a recent tax reduction for gasoline that lowered the price of 95-octane gasoline from 8.27 to 7.77 shekels per liter.
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What happened
- 01The Manufacturers Association of Israel demanded a one-shekel per liter tax cut on diesel fuel, including VAT.
- 02Association president Avraham Novogrotsky appealed to Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich for the tax relief.
- 03Diesel prices rose approximately 125% from early 2026 to October, compared to a 101% increase for gasoline.
- 04The price gap between diesel and gasoline widened from 178 shekels per thousand liters in January to 769 shekels in October.
- 05The Finance Ministry opposes the cut, estimating it would cost the government 200 million shekels in monthly revenue.
- 06Ministry officials argue that a diesel tax reduction would not fully benefit end consumers due to less effective price regulation.
Avraham Novogrotsky, president of the association, argued that while the government is easing the burden on private car owners, businesses are not receiving comparable support. According to the association, diesel prices rose by approximately 125% from early 2026 to October, compared to a 101% increase for gasoline. The price difference between the two fuels widened from 178 shekels per thousand liters in January to 769 shekels in October.
The Finance Ministry opposes the proposed cut, estimating it would cause a monthly revenue loss of 200 million shekels. Ministry officials also argue that diesel price regulation is less effective than for gasoline, raising concerns that the tax benefit would not fully reach end consumers.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: Cursorinfo. Read Cursorinfo’s originalThe coverage
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