Gas prices will drop by 5.48% - or 0.43 shekels per liter - beginning at midnight on Monday night.
The price reduction comes in the wake of a worldwide decline in the price of gas. The decline of the United States dollar compared to the shekel has also influenced prices.
Last month the price of gasoline went up by 0.25 shekels per liter, hitting an all-time high of 8.26 shekels per liter - roughly $7.80 per gallon at the exchange rate at the time.
Following the latest change, one liter of unleaded Octane 95 gas at a self-service pump will cost no more than 7.42 shekels. Full service pumps can charge up to 0.18 shekels more per liter.
In Eilat, the price per liter at a self-service pump will be 6.29 shekels. The price in Eilat does not include VAT.
The high price of gas in Israel has sparked social protests in the past, calling to reduce the tax rate.