Finance Minister Bezalel Smotrich instructed professional officials at his ministry on Tuesday to prepare for an additional subsidy on gasoline prices, hours after it was announced that the price is expected to jump by 52 agorot per liter.
According to the announcement by the Fuel and Gas Administration at the Ministry of Energy and Infrastructure, at midnight between Wednesday and Thursday, the maximum price for a liter of 95-octane gasoline at self-service stations will rise to 8.27 shekels - an increase of 52 agorot compared with last month.
The surcharge for full-service stations will remain unchanged at 26 agorot per liter.
In response to the expected increase, Smotrich held a meeting with professional officials on Tuesday afternoon and instructed them to prepare for an additional subsidy, aimed at moderating the price increase for consumers amid the global energy crisis.
At this stage, the amount of the reduction has not yet been determined. Once the professional review is completed, the Finance Minister is expected to determine the scope and details of the subsidy.
According to Smotrich, the reduction is necessary at this time to support economic growth, maintain price stability, and prevent higher fuel costs from driving up prices and inflation in other sectors.
The Fuel and Gas Administration explained Tuesday morning that the sharp increase is the result of a combination of higher global oil prices, a stronger dollar and an update to the excise tax, which was reduced by 50 agorot per liter last month under a temporary order that will expire at the end of October.
Prices are also expected to rise in Eilat. The maximum price for a liter of 95-octane gasoline at self-service stations, excluding VAT, is expected to increase by 44 agorot to 7.01 shekels. The full-service surcharge in the city will be 22 agorot per liter.