Finance Minister Bezalel Smotrich instructed professional staff on Sunday to advance an emergency reduction in the excise tax on gasoline, aiming to blunt an impending surge in consumer fuel prices driven by the global energy crunch and ongoing tensions with Iran.
According to a statement from his office, Finance Ministry officials are evaluating the precise scale and implementation mechanism of the tax cut. Smotrich plans to sign the official decree promptly to ensure price relief takes effect at pumps nationwide in the coming days. The policy intervention is designed to shield Israeli drivers from volatility across global crude markets. The excise tax constitutes a major component of retail pump pricing; reducing it allows the state to offset inflationary pressures stemming from geopolitical shocks.
At this stage, authorities have not finalized the exact percentage cut or the final savings per liter for consumers, as technical staff deliberate over the fiscal ceiling and budgetary offsets. Smotrich’s bureau emphasized that the ministry is moving rapidly. Once administrative reviews conclude, the minister will sign the required decree to bring the lowered excise rate into effect within days.
The move comes against the backdrop of an international energy crunch exacerbated by the prolonged conflict with Iran, factors that have exerted heavy upward pressure on retail fuel prices. By absorbing part of the price surge through excise relief, the Finance Ministry aims to prevent the full inflationary cost from falling entirely on domestic motorists. The initiative remains an operational directive, with specific parameters—including the exact reduction rate and net impact on consumer prices at the pump—slated for finalization upon the conclusion of internal ministerial reviews.