Good news for drivers: Gas prices will remain stable, for now

Finance Minister Bezalel Smotrich has signed orders reducing the excise and purchase taxes which are a significant component of gas prices.

The orders state that during July 2023, purchase and excise taxes per thousand liters of gas will total NIS 2988.33. 

The price of NIS 2988.33 will lead to a reduction of 41.5 agorot per liter of gasoline for the consumer, compared to the previous price without tax reductions. Following the reduction, the price of a liter of gas for July is expected to remain at NIS 6.85 per liter.

Since April 2022, when gas prices rose worldwide due to the war in Ukraine, temporary provisions have been continuously used to reduce the purchase and excise taxes applicable to gasoline.

The regulations currently in effect result in a reduction of about 50 agorot per liter of gas compared to the price without tax reductions. 

Gas price reduction to be lowered at end of June

This reduction was supposed to be lowered at the end of June, leading to a reduction of just 13 agorot per liter compared to the full price, which will remain in effect until the end of 2023.

In order to prevent the expected increase in the price of gas, the new orders state that during July 2023 (starting from July 2) a tax reduction will be applied that will result in a reduction of approximately 41.5 agorot per liter. This order will expire at midnight between July 31 and August 1.

Minister Smotrich stated that the fight against the soaring cost of living continues all the time and his ministry is doing everything so that Israelis pay less. 

His signing these orders will prevent the increase in fuel prices so that they'll remain at the same rate. Smotrich continues to fight the cost of living increases with other significant steps like opening the market to imports, lowering food prices and breaking up monopolies.