developing· Economy· Updated
Israel May See Sharp Fuel Price Hike After November 1st
Gasoline prices in Israel are projected to approach a historic high of nearly 9 shekels per liter by November 1 if Finance Minister Bezalel Smotrich does not extend a temporary fuel tax reduction. The current tax concession, which stands at one shekel per liter, is set to expire on October 31, shortly after the Knesset elections.
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What happened
- 01Gasoline prices in Israel could reach nearly 9 shekels per liter by November 1 if a temporary fuel tax reduction is not extended.
- 02The current fuel tax concession of one shekel per liter is scheduled to expire on October 31, shortly after the Knesset elections.
- 03Without an extension signed by Finance Minister Bezalel Smotrich, the price of 95-octane gasoline will rise from 7.77 to 8.77 shekels per liter.
- 04Global oil prices rising to $110 per barrel and a strengthening dollar could add an additional 10 to 20 agorot to the price.
- 05Economists forecast that the potential fuel price hike could increase Israeli inflation by 0.5% in November.
- 06The existing fuel tax breaks have cost the state budget nearly 500 million shekels, with a November extension estimated at 300 million shekels.
- 07The professional leadership within the Ministry of Finance opposes extending the tax relief, and the Finance Minister has not yet decided.
If the tax relief is not renewed, the price of 95-octane gasoline will automatically rise from its current 7.77 shekels per liter to 8.77 shekels. Rising global oil prices, which have climbed to approximately $110 per barrel due to the crisis in the Strait of Hormuz, along with a strengthening dollar, could add another 10 to 20 agorot, pushing the price close to 9 shekels. Economists warn that such a surge could boost Israeli inflation by half a percent in November.
The fuel tax breaks have already cost the state budget nearly 500 million shekels, and extending them through November would cost an additional 300 million shekels. While Dr. Amit Mor, CEO of Eco Energy, warned that further tax reductions might be necessary to prevent unprecedented prices, the professional leadership within the Ministry of Finance opposes extending the measure, and the Finance Minister has not yet made a decision.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: Cursorinfo. Read Cursorinfo’s originalThe coverage
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