After gasoline: industrialists demand finance ministry cut diesel tax by a shekel

The Manufacturers Association of Israel has demanded that the prime minister and finance minister reduce the excise tax on diesel fuel by one shekel per liter, citing a disproportionate rise in diesel prices compared to gasoline. The Finance Ministry opposes the move, estimating budget losses at 200 million shekels monthly and arguing that the benefit would not reach the end consumer due to unregulated diesel prices.

The Manufacturers Association of Israel on Wednesday, October 7, demanded that Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich reduce the excise tax on diesel fuel by one shekel per liter. Association President Avraham Novogrotsky noted that the state eases costs for private car owners but does not provide comparable assistance to businesses, for which diesel is a major production cost component. Industrialists cite data: from the start of 2026 through October, gasoline prices rose by 101%, while diesel rose by 125%. The price gap between them grew 4.3 times. The appeal was prompted by Smotrich's latest decision to cut the gasoline excise by half a shekel, bringing the total monthly relief to one shekel per liter. The Finance Ministry opposes a similar measure for diesel, estimating budget losses at 200 million shekels monthly. The ministry also notes that diesel prices are not regulated by the state, so the tax break would not fully reflect in the final price—the benefit would be shared between consumers and fuel-selling companies.