Israel to reduce gasoline prices following fuel tax cut

Israeli Finance Minister Bezalel Smotrich has signed an order to reduce the fuel tax by 0.5 shekels per liter for a period of two months, effective immediately. This measure aims to lower the price of 95-octane gasoline to 7.75 shekels per liter.

The decision follows a recent price hike that brought fuel costs to their highest levels in over a decade. Smotrich stated that the reduction is intended to alleviate the financial burden on citizens and curb indirect price increases across various economic sectors. He also noted that global tensions, including the conflict involving Iran, have contributed to rising energy costs.

While the move aims to combat inflation, it has faced internal opposition within the Ministry of Finance. Budget officials, the Tax Authority, and the Chief Economist warned that the tax cut could increase the national deficit during a complex economic period.