Full Breakdown
Israel Cuts Gasoline Price by 50 Agorot per Liter Ahead of Election
9/6/2026, 8:27:35 PM
Core Price Reduction
Finance Minister Bezalel Smotrich signed an order that lowers the self-service price of 95-octane gasoline from NIS 8.25 to NIS 7.75 per liter—a reduction of 50 agorot. The state will absorb the shortfall by temporarily relinquishing part of the excise tax collected from drivers. The discount takes effect at midnight and will remain in force until October 31, four days after the national election scheduled for October 27.
Background to the Surge
The price cut follows a sharp increase in gasoline costs that brought the regulated price to a level matching the September 2012 record. The Ministry of Energy and Infrastructure’s Fuel and Gas Administration attributed the rise to a roughly 6 percent jump in international gasoline prices, compounded by higher refining margins, a weaker shekel against the dollar, the linkage of the excise tax to the Consumer Price Index, and an updated marketing margin and full-service surcharge.
Mechanics of the Tax Cut
The Finance Ministry’s draft order proposes a 0.5 shekel per liter reduction in the excise tax. After a public comment period that closed on a Sunday, Smotrich is expected to sign the final order. By lowering the excise component, the government shifts part of the cost burden from drivers to the state treasury for the remainder of the election campaign.
Legal and Administrative Approval
The Finance Ministry’s legal adviser confirmed that the reduction is permissible, citing a precedent set when former finance minister Avigdor Liberman lowered the excise tax close to an election. Attorney-General Gali Baharav-Miara also approved the measure, allowing the caretaker government to act on what it deems an urgent and essential matter.
Political Context
Implementing the discount less than two months before the October 27 election has sparked concerns that the move constitutes “election economics,” giving the ruling coalition a tangible benefit to showcase to voters. While officials state the goal is to ease the financial burden on households, critics argue the timing may influence voter sentiment ahead of the poll.
