The order signed by Finance Minister Bezalel Smotrich to reduce the fuel excise tax took effect at midnight Sunday.
As a result, the price of a liter of gasoline dropped by 0.50 shekels, from 8.25 shekels to 7.75 shekels.
Smotrich presented the measure as part of efforts to combat the rising cost of living and inflation. He said the reduction in fuel prices is intended to ease the burden on households and businesses in Israel.
The Finance Minister linked the measure to the continued decline in inflation and the possibility of further interest rate cuts. According to Smotrich, lower inflation allows the Bank of Israel governor to continue cutting interest rates, thereby reducing borrowing costs for households and businesses.
"This is how we lower the cost of living for Israeli citizens, this is how we fight inflation, make sure it continues to fall, and enable the governor to continue lowering interest rates, easing the burden on households in Israel and allowing businesses to obtain credit at lower interest rates," Smotrich said.
He added, "We will continue working for the people of Israel. The people of Israel are strong - Israel's economy is strong."