The Minister of Finance, Bezalel Smotrich, has announced an order to reduce the excise tax and purchase tax on gasoline. The reduction is open for public comment until noon tomorrow. The order states that the price of self-service gasoline will decrease by 43 cents per liter. The previous discount of 33 cents per liter will expire at the end of the month. However, Mount Smotrich has published a new order with an increase of 10 cents, with a discount that will apply for a month until the end of April.
There is currently a temporary order that reduces approximately 13 cents per liter from the tax on gasoline, set to expire at the end of 2023. Another temporary order reduces approximately 33 cents per liter from the tax on gasoline, and will expire at the end of March 2023. To mitigate an expected increase in gasoline prices, a proposed tax reduction of 43 cents per liter will be applied in April 2023, in addition to a reduction of 13 cents that will remain in effect until the end of the year. The total reduction would be around 56 Agoras per liter, compared to the non-discounted price.
Additionally, oil prices have fallen worldwide, and a further drop in prices is expected. The Ministry of Energy will publish the updated price of fuel based on changing parameters tomorrow at noon. While the state will lose approximately NIS 130 million in taxes due to the reduction, the reduction will only have a 0.05 percent impact on the consumer price index of fuel prices.
Reduction in fuel prices: The Minister of Finance, Bezalel Smotrich, published this evening (Wed) for public comment orders that reduce the excise tax and the purchase tax imposed on gasoline. The orders are open for public comment until tomorrow at noon. The orders state that the price of fuel will decrease by 43 cents per liter of self-service gasoline. The previous order of the hour which gave a discount of 33 cents per liter will expire at the end of the month and Mount Smotrich is now publishing a new order with an increase of 10 cents with a discount that will apply for one month until the end of April.
The discount of 33 cents expires, and will be replaced by a discount of 43 cents
Today, there is a temporary order that reduces approximately 13 cents per liter from the tax on gasoline that will expire at the end of 2023, and another temporary order that reduces approximately 33 cents per liter from the tax on gasoline that will expire at the end of March 2023. In order to moderate the expected increase in the price of gasoline, it is now proposed that during In April 2023, a tax reduction of 43 cents per liter will be applied in addition to a reduction of 13 cents that will remain in effect until the end of the year. So, in total, the price of a liter of gasoline for the consumer in April will be about 56 Agoras lower than its price without reductions.
Smotrich, good news for refuelers Photo: Avshalom Sassoni/Flash90
Oil prices have fallen: tomorrow the Ministry of Energy will publish the price of fuel
In addition, against the background of the drop in oil prices in the world, a further drop in oil prices is expected regardless of the Minister of Finance’s order of the hour. Tomorrow at noon the Ministry of Energy will publish the updated price of fuel which is calculated every month based on changing parameters. The taxes that the state will lose from lowering the price of fuel is about NIS 130 million, but the reduction will be reflected in the consumer price index, which will decrease by about 0.05 percent only on fuel prices.