Full Breakdown
Israeli Finance Ministry Proposes One-Month Gasoline Price Cut
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Government Move to Reduce Gasoline Prices
The Finance Ministry announced that Finance Minister Bezalel Smotrich plans to sign an order reducing the excise tax on gasoline by 50 agorot per liter for a one-month period. If the order is approved and implemented, the price of a liter of gasoline would fall to roughly NIS 7.77, matching the level motorists paid in September. The proposal awaits the attorney-general’s position before the wording can be published for public comment.
Recent Price Surge and International Factors
On the night before the announcement, the regulated price of self-service 95-octane gasoline rose to a record NIS 8.27 per liter, surpassing the previous high of NIS 8.25 set in September 2012. Full-service pumps would add 26 agorot, bringing the price to NIS 8.53. The increase follows a 52-agorot rise from September’s NIS 7.75 after a prior excise-tax cut of the same amount. The Energy Ministry attributes the spike to an approximate 13 % rise in international gasoline markets and a 3 % strengthening of the U.S. dollar, both of which feed directly into Israel’s regulated fuel-price formula.
Legal and Procedural Steps
Legal advisers to the Finance Ministry have concluded that no legal impediment exists for the minister to sign the new reduction. However, the attorney-general’s opinion is required before the order can be finalized and opened for public comment. The ministry indicated that, once the attorney-general’s position is received, the wording of the price-reduction order will be published for review.
Expected Impact on Consumers
The proposed cut would bring the price of self-service gasoline back to the NIS 7.75–7.77 range seen in September, effectively erasing the recent increase. Full-service customers would still pay a modest premium of 26 agorot per liter. By lowering the excise tax, the government aims to mitigate the effect of volatile global oil prices and a stronger dollar on Israeli motorists, especially during the current election period.