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Israel gasoline price fluctuations and tax response

Updated 2 times since CLSTR started tracking revisions of this situation.

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2026-09-28 23:48 UTC → 2026-10-04 16:54 UTC · added removed

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 was intended to lower the price of 95-octane gasoline to 7.75 shekels per liter and alleviate the financial burden on citizens. Smotrich noted that global tensions, including the conflict involving Iran, have contributed to rising energy costs. However, the decision faced opposition from budget officials, the Tax Authority, and the Chief Economist, who warned that the tax cut could increase the national deficit. Despite the temporary Following a similar tax reduction, cut in September, Prime Minister Benjamin Netanyahu announced a further reduction in fuel prices are expected to rise again by 25 to 40 agorot half a shekel per liter. liter, effective at midnight. This upcoming increase is driven by rising crude oil prices and international tensions decision, made in agreement with Smotrich, aims to lower the Strait price of Hormuz following failed diplomatic negotiations between the United States and Iran. These gasoline from 8.27 shekels to 7.77 shekels per liter. Netanyahu stated that while global fuel hikes prices are occurring alongside broader cost-of-living pressures, as new fees from rising, the Israel Standards Institute for controlling imported products are expected government is working to increase consumer prices for food, cosmetics, and household goods starting October 1. ensure they do not rise in Israel. This second reduction in two months comes amid an election campaign, despite concerns from Ministry of Finance officials regarding an ‘election economy.’

Versions

  1. 2026-10-04 16:54 UTC Israel gasoline price fluctuations and tax response
  2. 2026-09-28 23:48 UTC Israel gasoline price fluctuations and tax response
  3. 2026-09-06 15:51 UTC Israel gasoline price fluctuations and tax response

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