Smotrich to again increase state fuel subsidies to counter rise in gas prices

Finance Minister Bezalel Smotrich announced on Tuesday he will deepen fuel tax subsidies to prevent a pending rise in gas prices, which were set to increase by 52 agorot per liter to an all-time high of NIS 8.27. The move follows a similar September 6 cut of 50 agorot, which the Treasury's professional echelon reportedly viewed as unwise. Smotrich wrote on X/Twitter that he instructed Treasury professionals to deepen the subsidization to cancel the expected increase, amid a 13% rise in global fuel costs due to supply-chain disruptions.

Finance Minister Bezalel Smotrich announced on Tuesday that he will deepen fuel tax subsidies to prevent a pending rise in gas prices. The price of gas in Israel was set to increase by 52 agorot per liter at midnight between Wednesday and Thursday, bringing it to an all-time high of NIS 8.27 per liter. Smotrich wrote on X/Twitter that he instructed Treasury professionals to deepen the subsidization to cancel the expected increase. The move comes amid an approximately 13% rise in global fuel costs due to supply-chain disruptions. Smotrich met with senior Finance Ministry officials earlier on Tuesday, describing the tax reduction as appropriate to push growth in the Israeli economy. On September 6, Smotrich signed an order to cut the price by 50 agorot, managing the deficit through a separate tax reduction. That move, approved by the prime minister's legal advisor, was seen as unwise by the Treasury's professional echelon, according to N12. Smotrich made a similar move in July 2023 to avoid a gas price increase, with the Finance Ministry continuously applying such tax provisions since April 2022.