Government Extends Fuel Tax Reduction Ensuring Stable Gasoline Prices Until End of November 2023

Minister of Finance has signed orders extending the tax reduction on gasoline until the conclusion of November 2023. Originally set to expire at midnight between November 16 and 17, the extension comes after the initial reduction was prolonged twice due to budgetary challenges.

The tax reduction, amounting to 70 shekels per liter, has provided relief to consumers and will continue to do so until the stroke of midnight between November 30 and December 1, 2023. The move comes at a cost of NIS 100 million, to be sourced from the 2024 budget, with a portion coming from cuts outlined in next year's coalition agreements.

Facing a recurrent monthly challenge, the Ministry of Finance has consistently found legal accounting solutions to sustain the fuel tax reduction, with the subsidy witnessing a cumulative increase of approximately three billion shekels since spring 2022. The latest extension, covering the remainder of November, is set to ease the burden on consumers, maintaining the price at NIS 6.94 per liter.

The government's commitment to mitigating the impact of fuel price hikes has been evident since April 2022, with successive temporary provisions reducing both the purchase tax and excise tax on gasoline. The Minister of Finance, in a recent move on November 6, 2023, solidified this commitment by signing orders extending the tax reduction until the end of the month, averting an imminent increase in fuel prices.

Despite the challenges in finding a sustainable budgetary source, the government remains resolute in its efforts to support citizens, employing strategic measures to ensure continued relief at the pump.