Israel cuts fuel tax as US-Iran conflict pushes up gasoline prices

Jerusalem: Israeli Finance Minister Bezalel Smotrich on Sunday signed an order to cut the country's fuel excise tax for the next two months, citing a spike in gasoline costs due to the U.S. conflict with Iran.

* Israel's Energy Ministry sets gasoline prices at ‌the start of ⁠each month.

* ⁠On September 1, petrol prices rose by 0.16 shekel a litre to ​8.25 shekels ($2.74) a litre, matching an all-time high and raising the public's ire. ​At $10.41 a gallon, gasoline in Israel is among the highest in the world.


* Some 44% of the price is Israel's "blu" ​tax, or its fuel excise tax, which ⁠was 3.66 ‌shekels a litre at the start of ​the month. Another ​15% of the cost is value added ⁠taxes and 33% is the price of oil globally.

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* ​Smotrich ordered a 0.5 shekel a litre ​cut in the tax that will bring the price of gasoline to 7.75 shekels a litre as of midnight on Monday.

* Brent crude futures closed at their highest level since July 24 on Friday, at $96.28 a barrel, as tensions in ‌the Middle East drive global supply concerns. Israel has not been part of the latest fighting since an ​April ceasefire ​deal.

* Last week, ⁠the Bank of Israel reduced its benchmark interest rate by 25 basis points for a third straight decision due to low and stable ​inflation. Smotrich at the time said more easing was needed.

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* Deputy Bank of Israel Governor Andrew Abir told Reuters further reductions were possible if price pressures remain stable and depending on how the economy reacts to three straight rate cuts.