What happened
Israel's Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich have intervened to reduce gasoline prices. The price of a liter of gasoline has been lowered from NIS 8.27 to NIS 7.77, a decrease of 50 agorot per liter. This reduction was achieved by cutting the fuel excise tax, which Smotrich signed into effect on Sunday.
The move aims to mitigate the impact of soaring global fuel prices on Israeli drivers. According to the Government Press Office, the Israeli government is working to keep fuel prices in check, despite global increases. The statement also highlighted Israel's low electricity prices, which are among the lowest in the West, due to the development of natural gas reserves and competition in electricity production.
This is not the first time Smotrich has cut gas prices. Previously, he announced a similar reduction to prevent drivers from absorbing the rising cost of fuel. However, the earlier price cuts were offset by a subsequent increase in gasoline prices, which reached a record high of NIS 8.27 per liter in late September. This increase was driven by a 13% global jump in gas prices, supply chain disruptions, and instability in the Middle East, as well as a strengthening of the US dollar against the shekel.
