Israel Approves Fuel Excise Tax Cut to Lower Gasoline Prices by 0.50 NIS
Attorney General Gali Baharav-Miara approved a fuel excise tax reduction, lowering gasoline prices by 0.50 NIS per liter starting Sunday night after prices hit a record 8.27 NIS.
Attorney General Gali Baharav-Miara approved the reduction of the fuel excise tax today (Thursday), paving the way for a 0.50 NIS per liter drop in gasoline prices, effective Sunday night. According to the plan, the administrative order will be published for public comment, allowing Minister of Finance Bezalel Smotrich to sign it on Sunday.
The legal approval comes after fuel prices hit an all-time high of 8.27 NIS per liter for 95-octane gasoline at self-service stations (plus 26 agorot for full service), driven by soaring global oil prices and a stronger US dollar. This price hike completely erased the previous reduction implemented by Smotrich.
With the green light from the Attorney General, the required procedure will be completed, and on Sunday the price will drop back to approximately 7.77 NIS per liter for the coming month. Until then, drivers will pay the record price at the pumps.
This marks the second round of tax cuts within a short period during an election season, making the legal issue particularly sensitive. Last month, a similar legal approval was required for a temporary tax cut that lowered the price by half a shekel. Smotrich requested to repeat the measure after the latest spike wiped out the prior discount.
According to the Ministry of Energy, international gasoline prices rose by approximately 13% during the calculation period, alongside a 3% strengthening of the US dollar. Both factors directly impact Israel's regulated pricing formula, causing the sharp price hike that took effect at midnight.
