The Ministry of Energy will announce the final price, which will probably remain around NIS 6.85

Finance Minister Bezalel Smotrich published for public comment another order to reduce the tax on fuel, according to which it will stand at 38 shekels until the end of July, after it stood at 54 shekels in June, 49 shekels in May and 58 shekels in April. The order is open for public comments until tomorrow at 9 am, after which the Ministry of Energy will announce the final price, which will likely remain around NIS 6.85, or will drop slightly. In doing so, the government is actually continuing the "method" they used to avoid price increases for consumers.
Against the background of the increases in the price of fuel, since April 2022, one-hour provisions have been continuously applied that reduce the excise duty applicable to gasoline. In accordance with the aforementioned time instructions, in the current month (June 2023), there is a reduction in the excise duty on gasoline, leading to a reduction of 50 agora from the price of a liter of gasoline for the consumer compared to the price without the instruction
In this decree, it is proposed to state that from July 2 to July 31, 2023, the reduction of 38 cents from the price of a liter of gasoline for the consumer will apply. "Upon the expiration of this temporary order, the reduction of approximately 13 cents from the price of a liter of gasoline, which was in effect until the end of 2023, will return to effect. It should be noted that at the same time as this decree is promoted, a parallel amendment is being promoted for the purpose of reducing the purchase tax on gasoline as part of the amendment to the decree on the customs tariff and exemptions and purchase tax on Tobin (hour order no. 17), 2022-2022," the draft reads.
Already two months ago senior officials in the Treasury opposed the extension of the reduction due to the fact that there is now a significant decrease in tax revenues, a situation that will lead to a further increase in the deficit. According to the Ministry of Finance, the loss of the state's tax revenues due to the reduction in April amounted to NIS 130 million, due to May an additional NIS 50 million, due to June an additional NIS 176 million and will now amount to an additional NIS 75 million in July. However, a jump in the price of fuel also affects the consumer price index and would further boost inflation.
Let us remind you that in order to determine the price of fuel at the stations, which is supposed to be updated on the night between Saturday and Sunday, as at the end of every month, the Ministry of Energy calculates for five days how much, on average, a barrel of oil became more expensive or cheaper in the world, especially in the Mediterranean basin, and also in the agreements that Israel has with the suppliers, which are sometimes related In addition to several other trade matters that silence is good for them. This is also how the exchange rate of the dollar against the Israeli currency is calculated at the end of the month, compared to the previous month, and the final calculation is made as to how much the price of fuel at stations and factories should be raised or lowered. In recent months, as mentioned, after this calculation is made, the government adjusts the tax reduction so that the price for the consumer does not increase.
The price of fuel dropped at the beginning of March to NIS 6.81, after previously jumping to a price of NIS 7.17 for two days, because Smotrich published the order to reduce the price of fuel at the last minute. The previous peak was in July, when the price climbed to NIS 8.08 per liter - and then the fuel tax was reduced by a whole NIS by the previous government. Until the end of January, the tax reduction on fuel was only 13 cents.