# Israel gasoline price fluctuations and tax response

> Live situation record from CLSTR: https://clstr.news/situations/israel-gasoline-price-fluctuations-and-tax-response
> Updated: 2026-09-06T12:18:14.000Z. Sources: 5. Developments: 2.

Gasoline prices in Israel reached a record high of 8.25 shekels per liter for 95-octane fuel. This surge was attributed to rising international prices, excise tax adjustments, and higher marketing margins. The price increase led to political pressure on the government to fulfill previous promises to lower fuel costs.

In response, Finance Minister Bezalel Smotrich signed an order to reduce the fuel tax by 0.5 shekels per liter for two months. This measure is intended to lower the price of 95-octane gasoline to 7.75 shekels per liter and alleviate the financial burden on citizens. However, the decision faced opposition from budget officials and the Tax Authority, who warned that the tax cut could increase the national deficit.

## Timeline

### 2026-09-06: Israel to reduce gasoline prices following fuel tax cut

Israeli Finance Minister Bezalel Smotrich has ordered a two-month fuel tax reduction to lower 95-octane gasoline prices to 7.75 shekels per liter.

3 sources. https://clstr.news/cluster/israel-to-reduce-gasoline-prices-following-fuel-tax-cut

### 2026-08-31: Israel gasoline prices hit record high of 8.25 shekels per liter

Israel's gasoline prices have hit a record 8.25 shekels per liter for 95-octane fuel, driven by international market shifts and tax adjustments, prompting political pressure for government intervention.

2 sources. https://clstr.news/cluster/israel-gasoline-prices-hit-record-high-of-825-shekels-per-liter

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Cite as: Israel gasoline price fluctuations and tax response. CLSTR, https://clstr.news/situations/israel-gasoline-price-fluctuations-and-tax-response