The Ministry of Finance legal advisor announced this morning that there is nothing to prevent Minister of Finance Bezalel Smotrich from issuing another order to cut the excise on gasoline prices. The Attorney General must also approve the move before any cut can be officially announced.
Smotrich plans to cut the maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel by NIS 0.50 per liter. Prices rose by NIS 0.52 per liter today to NIS 8.27 per liter, including VAT, an all time record high. Full service pumps are NIS 0.26 per liter more expensive.
The Ministry of Energy and Infrastructure stressed, "The projected price includes the adjustment on the excise tax, which was cut last month by NIS 0.50 per liter." This follows Smotrich's decision to subsidize the rise in fuel prices for two consecutive months, extending through the end of October 2026, immediately following the Knesset elections. In other words, without the subsidy already in effect, the price of fuel would have risen even further.
Last month’s subsidy, which was approved, cost the state NIS 268 million in lost tax. This week, the Finance Minister instructed his staff to increase the subsidy to prevent the latest price hike.
This morning, the Ministry of Finance announced, "The position of the Ministry's legal advisor is that there is no legal impediment to the Finance Minister signing an order to cut gasoline prices for the coming month, as requested. The Attorney General must now provide her position, after which the draft of the price-reduction order can be published for public comment."
At the start of September, the price of gasoline rose NIS 0.16 to NIS 8.25 per liter, equalling the all-time high set in September 2012. However, Smotrich decided, through a temporary, to cut excise, bringing the price down to NIS 7.75 per liter. This means that after the elections, should the subsidy not be extended, the price of gasoline will surge by NIS 1.
Published by Globes, Israel business news - en.globes.co.il - on October 1, 2026.
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