Smotrich orders increased fuel subsidies in Israel — Jerusalem Post

Israeli Finance Minister Bezalel Smotrich said he had instructed ministry specialists to increase state fuel subsidies in order to cancel the planned price rise. He wrote about this on X, The Jerusalem Post reports.

Planned increase

Fuel prices in Israel were set to rise by 52 agorot per liter on the night from Wednesday to Thursday, reaching a record 8.27 shekels per liter. Smotrich also discussed the situation with senior Finance Ministry officials.

According to N12, the minister described tax cuts as an appropriate step under the current circumstances to stimulate growth in the Israeli economy.

More current news is available on the UA.News Telegram channel Telegram.

Previous decisions

On September 6, Smotrich signed an order to reduce the price by 50 agorot. According to The Jerusalem Post, the deficit under this decision was planned to be addressed through a separate tax cut.

As N12 reports, the decision was approved by the prime minister's legal adviser, but it was considered inappropriate in the Finance Ministry's professional circles. The minister took a similar step in July 2023 to avoid an increase in fuel prices, while the Finance Ministry has used such tax mechanisms since April 2022.

The Jerusalem Post also notes that global fuel costs have risen by about 13% amid concerns over possible supply-chain disruptions and the vulnerability of the global energy market.