Full coverage· Economy· Updated 29 Oct, 16:32

Fuel Prices to Drop Then Soar in Israel Amid Tax Uncertainty

The maximum price of 95-octane self-service gasoline in Israel will decrease by 42 agorot to NIS 7.35 per liter at midnight between Saturday, October 31, and Sunday, November 1, 2026. In Eilat, where VAT does not apply, the price will drop by 35 agorot to NIS 6.23 per liter. The surcharge for full service remains unchanged at 26 agorot per liter.

12 newsrooms · 3 languages · since 29 Oct, 13:32

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What happened

01Gasoline prices in Israel will decrease by 42 agorot to NIS 7.35 per liter starting Sunday, November 1, 2026.
02In Eilat, the price of 95-octane gasoline will drop by 35 agorot to NIS 6.23 per liter.
03The price reduction is driven by a 13.19% drop in international fuel costs, offsetting a 2.02% rise in the dollar.
04Fuel prices could jump by a full shekel to NIS 8.35 per liter on November 5 if tax relief orders expire.
05The tax reduction orders signed by Finance Minister Bezalel Smotrich are set to expire on November 4.
06Extending the tax reduction orders is estimated to cost the state 300 million shekels monthly in lost revenue.
07The surcharge for full-service refueling will remain unchanged at 26 agorot per liter.

This reduction is primarily driven by a 13.19% drop in international gasoline prices and a VAT decrease, which together offset a 2.02% strengthening of the US dollar against the shekel. However, the Ministry of Energy and Infrastructure warned that this relief could last only five days. If temporary tax reduction decrees are not extended, the price is projected to surge by a full shekel to NIS 8.35 per liter on November 5, and to NIS 7.07 in Eilat.

The potential price hike hinges on the expiration of excise tax discount orders signed by Finance Minister Bezalel Smotrich in the two months leading up to the elections. These orders, which lower the fuel tax by one shekel, are set to expire on November 4. The Ministry of Finance is currently working to extend them, a move that would cost the state approximately 300 million shekels per month in lost tax revenue but is expected to be legally permissible post-election.

Summarized by baba from the reports of 11 newsrooms. Updated 29 Oct, 16:47