Smotrich signs fuel subsidy order
Finance Minister Bezalel Smotrich signed an order to subsidize the excise tax on fuel, setting the price of a liter of gasoline at 7.85 shekels starting November 5, instead of 8.35 shekels. The tax revenue loss from this order is 136 million shekels.
Finance Minister Bezalel Smotrich signed an order to subsidize the excise tax on fuel in order to lower its price. Starting November 5, the price of a liter of gasoline will stand at 7.85 shekels, instead of the 8.35 shekels it was supposed to cost. On November 1–4, the price will be 7.35 shekels due to a previous order. The state will subsidize the difference from its treasury. Fuel prices remain at a historically high level due to high oil prices (Brent crude stands at $115 per barrel) and a high refining margin. The high oil price results from Iran's blockade of the Strait of Hormuz and Ukraine's attacks on refining infrastructure in Russia. The state's revenue loss from the tax reduction in the current order is expected to reach 136 million shekels, joining previous losses of 175 million and 282 million shekels, so that the last three months total a loss of 593 million shekels. If the order is not extended after November, a rise of one and a half shekels per liter is expected.