Israeli Government Cuts Gas Prices

As part of the program to deal with rising prices in the economy, the Minister of Finance, Bezalel Smotrich, signed orders last week to reduce the purchase tax and the excise tax on gasoline. The orders, which will come into effect on Sunday, January 22, 2023, will result in an immediate reduction in the price of a liter of gasoline by 10 Agorot.

In order to reduce the price of fuel for the consumer, against the background of the increases in the price of fuel, since April 2022 temporary provisions have been continuously applied that reduce the purchase tax and the excise tax applicable to gasoline. The curfew that currently applies reduces about 3 cents from the price of a liter of gasoline for the consumer compared to the price without the curfew, and it will expire on February 16, 2023.

In order to avoid an increase in the price of fuel for the consumer upon the expiration of the temporary order, the temporary order that will enter into force on Sunday, January 22, 2023, states that the purchase tax and the excise tax that will apply to gasoline until the end of 2023 will be reduced, so that they will be 3,183.32 shekels per thousand liters.

This reduction is expected to reduce an additional 10 Agorot from the current price of a liter of gasoline for the consumer and place it at a level that is about 13 cents lower than the price without the time limit.