Israel’s Gasoline Price Falls 42 Agorot to NIS 7.35 on Sunday, Then Rises to NIS 7.85 on Nov. 5 as Smotrich Halves the Excise Tax Cut

The maximum price of self-service 95-octane gasoline in Israel will fall by 42 agorot to NIS 7.35 a liter at midnight between Saturday and Sunday, Nov. 1, the Energy and Infrastructure Ministry announced on Thursday, Oct. 29. The relief will be short-lived: Finance Minister Bezalel Smotrich signed an order overnight Thursday extending a temporary cut in the excise tax on fuel at half its current size, so the price will rise to NIS 7.85 a liter on Nov. 5, Globes, Calcalist and Walla reported Friday.

The Haredi news site Kikar HaShabbat reported the price cut in a Hebrew-language Instagram post on Thursday. “Good news for drivers,” the post said. “The maximum price of a liter of 95-octane gasoline at self-service will stand at 7.35 shekels, starting at midnight between Saturday and Sunday. This is a decrease of 42 agorot per liter compared with the price in the previous update.”

Source: Instagram, @kikarhashabat. This report is an English translation of a Hebrew-language post.

View the original post on Instagram

Why the price is falling

The ministry said the reduction reflects a drop of about 13% in gasoline prices in the Mediterranean basin, partly offset by a rise of about 2% in the dollar exchange rate, The Jerusalem Post and Ynet reported. According to Calcalist, the lower international price, converted into shekels, accounts for 36 agorot of the cut, and a smaller VAT component accounts for the remaining 6 agorot. The new price is 5.4% below the current NIS 7.77.

The additional charge for full-service fueling stays at 26 agorot a liter. The Jerusalem Post reported that the announcement surprised the market: earlier on Thursday, energy-market sources had expected an increase of about 30 agorot, to roughly NIS 8.30 a liter, based on rising global oil prices and a stronger dollar.

The excise tax decision

Since early October, drivers have benefited from a temporary reduction of NIS 1 a liter in the excise tax on gasoline. Ynet reported that Smotrich extended the order at the start of the month and doubled the reduction from the half-shekel cut in place in September, setting the price at NIS 7.77 instead of a record NIS 8.77. The order was due to lapse overnight between Nov. 4 and Nov. 5. The ministry had warned that without an update, the maximum price would rise to NIS 8.35 a liter from Nov. 5, The Jerusalem Post reported.

Smotrich signed an extension overnight but reduced the cut from NIS 1 to 50 agorot a liter, Walla and Globes reported. As a result, the price will rise on Nov. 5 to NIS 7.85, 8 agorot above the current price. Walla reported that the extension runs for 26 days, to the end of November, so that the next tax change coincides with the regular monthly price update.

Globes reported that the state’s lost tax revenue from the new order is expected to reach NIS 136 million, on top of NIS 175 million and NIS 282 million from the two previous orders, for a total of NIS 593 million over three months. Walla reported that halving the benefit saves the treasury about NIS 150 million. Globes reported that if the order is not extended again after it expires at the end of November, fuel prices are expected to rise significantly.

Why fuel remains expensive

Globes reported that fuel prices remain at historically high levels because of very high crude prices, with Brent trading at about $115 a barrel, and an unusually wide refining margin. The paper attributed the high cost of oil to Iran’s actions in the Strait of Hormuz, which raised transit costs and added a geopolitical risk premium even though tanker traffic has largely returned to pre-war levels. It said part of global refining capacity has been affected by the situation in the strait and by long-range Ukrainian strikes on Russia, a major fuel exporter.

Under Israel’s regulated pricing system, the ministry sets the maximum price of 95-octane gasoline at self-service stations at the start of each month, based on international fuel prices and the exchange rate.

This report was translated from Hebrew by Bukharian Jewish Post from coverage by Kikar HaShabbat, Calcalist, Globes, Ynet and Walla.

Sources: Kikar HaShabbat on Instagram (Hebrew, translated), Oct. 29, 2026; Globes (English), “Gasoline prices to fall Saturday night then rise more sharply,” Oct. 29, 2026; Globes (Hebrew), “Smotrich signs fuel subsidy order,” Oct. 30, 2026; The Jerusalem Post, “Gasoline to cost NIS 7.35 from Sunday, defying forecasts of a hike,” Oct. 29, 2026; Calcalist (Hebrew), “Smotrich signed: fuel will rise, but by less,” Oct. 30, 2026; Ynet (Hebrew), “A 42-agorot cut: fuel to cost 7.35 shekels a liter,” Oct. 29, 2026; Walla Money (Hebrew), “Smotrich extended the fuel tax cut, but the price will rise by 8 agorot,” Oct. 30, 2026.