Consumer10/1/2026

Following Legal Approval, Gasoline Price to Be Cut by 50 Agorot

At midnight between Saturday and Sunday, the price of a liter of gasoline in Israel will be cut by 50 agorot. The decision was made possible after the legal advisers of the Ministry of Finance and the Attorney General determined that there was no impediment to temporarily reducing the excise tax on fuel.

Key facts

•Price cut: 50 agorot per liter
•Price before the cut: 8.27 shekels per liter
•Start of the price cut: At midnight between Saturday and Sunday
•Duration of the measure: One month, until its revocation in November
•Loss of state revenue: Approximately 150 million shekels per month

What Happened

The price of gasoline reached a record high of 8.27 shekels per liter—52 agorot more than in the previous month. Following this, Finance Minister Bezalel Smotrich instructed that the subsidy be increased to offset the expected rise in fuel prices.

Why a Legal Review Was Required

To lower the price of gasoline, the finance minister must sign an order temporarily reducing the excise tax. The Ministry of Finance’s legal department concluded that there was no legal impediment to signing such an order and reducing the price over the coming month. The Attorney General subsequently also confirmed that there was no impediment to doing so.

Duration and Cost of the Measure

The excise tax reduction will be the second within two months and will last for one month, after which it will be revoked in November. According to the estimate cited in the source, the state budget will lose approximately 150 million shekels in revenue per month—an amount similar to the revenue lost as a result of the previous excise tax reduction.

Why Fuel Became More Expensive

In September, the minister had already signed an order temporarily reducing the tax after the price rose to 8.25 shekels per liter, and the price of gasoline was cut by 50 agorot. The source attributes the current global price increase to rising oil prices and instability in international supply chains, among other factors, against the backdrop of the war between Iran and the United States.

What this means for you

For drivers, the measure means a temporary reduction of 0.50 shekels in the price of each liter of gasoline. The benefit is intended to last for only one month: according to the source, it is expected to be revoked in November, so the lower price is not permanent.

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