Drivers in Israel could see a 50 agorot per liter drop in gasoline prices starting Monday, following a move by the Ministry of Finance to temporarily lower the tax on gasoline.

On Thursday (September 3), the Finance Ministry published the plan for public comments. Once this process is completed, Finance Minister Bezalel Smotrich is expected to approve and sign the measure.

If approved, the price of 95 octane gasoline at self-service stations will drop from the current NIS 8.25 to NIS 7.75 per liter.

When will the price go down?

The lower price is expected to take effect at midnight between Sunday and Monday.

This means that drivers should see the new, lower price at gas stations starting Monday.

For now, however, the change is not yet final. The current price of NIS 8.25 remains in effect until the tax reduction is officially approved and takes effect.

How much will drivers save?

A 50-agorot reduction per liter would mean:

• 40 liter tank: NIS 20 saved
• 50 liter tank: NIS 25 saved
• 60 liter tank: NIS 30 saved

The actual savings will depend on how much fuel is purchased.

Why is the price going down?

The price of gasoline increased by 16 agorot at the beginning of September, reaching NIS 8.25 per liter.

The price of gasoline in Israel is affected by international fuel prices, the dollar exchange rate, government taxes and VAT.

The temporary tax cut is intended to lower fuel costs for drivers and provide some relief from the rising cost of living.

How long will the lower price last?

The proposed tax cut is temporary and is expected to remain in effect until the end of October 2026.

The government estimates that the measure will cost around NIS 155 million per month, or about NIS 310 million over two months.

Does this apply to diesel?

No. The proposed reduction applies to 95-octane gasoline. It does not apply to diesel or other types of fuel.

What does this mean for drivers?

If the plan is approved and takes effect as expected, drivers will pay NIS 7.75 per liter for 95-octane gasoline starting Monday, instead of NIS 8.25.

Until the change is officially approved, the current price of NIS 8.25 per liter remains in effect.