Finance Minister Yuval Steinitz signed orders, Sunday evening, extending reductions on the tax on diesel fuel used for generating electricity until the end of 2012. The reductions were made in light of disruptions to the supply of natural gas and the increase in the price of alternative fuels.

The reduction is in the form of an 88-percent exemption from the excise tax on diesel fuel. It is intended to reduce anticipated rises in electric rates while addressing the Israel Electric Company's cash-flow problem.