After the elections, the bill will arrive: electricity, water, and fuel will become more expensive

The next government will have to raise taxes and contend with rising costs of electricity, water, fuel, and public transportation. The outgoing government postponed many price increases but accumulated costs. Fuel prices are temporarily held down by reducing the excise tax but are expected to jump in November. Public transportation fares were frozen until 2027, but an increase of about 4% is expected. Electricity and water prices are expected to rise by 2% to 5%.

The next government will have to contend with a wave of price increases in electricity, water, fuel, and public transportation, after the outgoing government postponed many price hikes but thereby accumulated costs and passed the bill to the future. Fuel prices are maintained for now by reducing the excise tax by one shekel per liter, at a cost of about half a billion shekels over two months, but in November the price is expected to jump. Public transportation fares, which rose by about 45% in 2025, were frozen until 2027, but then an accumulated increase of at least about 4% is expected. Electricity prices are expected to rise by about 2%, after a partial offset from the sale of the IBC fiber optic venture. Water prices could rise by 3% to 5%, following the algae crisis, depletion of natural reservoirs, and the need for desalination on a larger scale. The article notes that the increase in these key inputs could trickle down to food prices and other goods and services.