JERUSALEM – Israel’s Finance Minister Avigdor Lieberman on Tuesday announced a reduction in the supervised gasoline price by lowering the excise tax.
The maximum price for unleaded 95-octane gasoline per liter will be reduced from 7.44 shekels (2.34 U.S. dollars) to 6.94 shekels, Lieberman was quoted as saying in a statement issued by Israel’s Finance Ministry.
This is the first reduction of fuel excise tax in Israel since August 2012, when there was a tax reduction for only one month. A month later, in September 2012, the gasoline price reached an all-time high of 8.25 shekels per liter.
The decision is expected to take effect after an approval by the parliament’s finance committee and will be valid for at least three months, during which the price will continue to be updated monthly, but with a reduced excise tax, the ministry said.
The current gasoline price of 7.44 shekels per liter, which took effect on April 1, is the highest in Israel since July 2014.
The minister’s decision was made possible thanks to the recent increase in state revenues and the high growth figures of the Israeli economy, the ministry explained.
A tax reduction of the same amount will be applied to the price of diesel fuel, which is not supervised by the Israeli government.