Israel to reduce fuel prices by half a shekel per liter

Israeli Prime Minister Benjamin Netanyahu announced a reduction in fuel prices by half a shekel per liter, effective at midnight. The decision follows an agreement with Finance Minister Bezalel Smotrich to lower the production tax.

The price of gasoline will drop from 8.27 shekels to 7.77 shekels per liter. Netanyahu stated that while global fuel prices are rising, the government is working to ensure they do not rise in Israel, noting that electricity prices remain among the lowest in the West due to gas reserve development and increased competition.

This move comes amid an election campaign and despite opposition from professional officials within the Ministry of Finance, who expressed concerns regarding an ‘election economy.’ This marks the second such reduction in two months, following a similar tax cut implemented in September.