Full Breakdown
Israel Cuts Gasoline Prices by 42 Agorot per Liter
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In this breakdown
01
Fuel Price Cut Announced
The Fuel and Gas Administration of the Energy and Infrastructure Ministry said that, at midnight between Saturday and Sunday, the maximum price for self-service, unleaded 95-octane gasoline (including VAT) will drop to NIS 7.35 per liter, down from the current NIS 7.77. The reduction amounts to 42 agorot per liter. The additional charge for full-service fueling will stay at 26 agorot per liter.
02
Market Context and Prior Forecasts
The price cut follows a roughly 13 % decline in gasoline prices across the Mediterranean basin, which was partly offset by an approximately 2 % rise in the Israeli dollar exchange rate. Earlier on the same Thursday, energy-market sources had projected a price increase of about 30 agorot per liter, estimating a new level near NIS 8.30. Those forecasts were based on expectations of higher global oil prices amid a possible regional escalation involving Iran and a strengthening U.S. dollar after recent election results.
03
Tax Policy and Financial Impact
The reduction is driven by a temporary excise-tax cut of NIS 1 per liter introduced by Finance Minister Bezalel Smotrich. The Ministry estimates the tax benefit costs roughly NIS 326 million each month. The current temporary order is set to expire on November 3.
04
Official Outlook and Upcoming Deadline
The Energy and Infrastructure Ministry warned that if the excise-tax order is not renewed, the temporary provision will lapse overnight between November 4 and November 5, after which the maximum price would rise to NIS 8.35 per liter. Extending the tax benefit for another month would be required to avoid that increase.
05
Implications for Consumers
The announced cut provides immediate relief to millions of Israeli drivers, as illustrated by a photograph taken on October 1, 2026 of a man refueling in central Israel. However, consumers will need to monitor forthcoming decisions by the Finance Ministry, since the price relief is contingent on a timely extension of the excise-tax reduction.