The price of fuel continues to climb. Gasoline prices are expected to increase in June, but at a lower rate than expected, after Finance Minister Bezalel Smotrich signed orders to reduce the tax on gasoline during June 2023, in order to moderate the price increase.
Following the reduction, the price of a liter of gasoline per consumer for June is expected to increase by only about 4 agorot, to NIS 6.85.
Minister of Finance Bezalel Smotrich, Photo: Oren Ben Hakon
The finance minister signed decrees on Tuesday reducing the excise tax and purchase tax imposed on gasoline. The orders stipulate that during June 2023, gasoline will be subject to purchase tax and excise tax at a rate of NIS 2,915.68 per 50,<> liters, so that there will be a reduction of <> agorot in the price of a liter of gasoline per consumer, compared to its price without tax reductions.
Since April 2022, against the background of the increase in fuel prices, temporary provisions have been continuously applied reducing the purchase tax and excise tax applicable to gasoline. The temporary regulations currently in force lead to a reduction of about 49 agorot from the price of a liter of gasoline to the consumer compared to the price without tax reductions.
On June 1, this reduction was supposed to decrease, so that there would be a reduction of only 10 agorot in the price of a liter of gasoline to the consumer compared to the price without tax reductions. In order to mitigate the expected increase in the price of gasoline, which is due to be updated tonight, the orders signed now instruct that during June 2023 there will be a reduction in the tax that will lead to a reduction of about 50 agorot per liter in the consumer price, which will expire at midnight between July 1 and 2.
Finance Minister Bezalel Smotrich: "Another important step in the fight against the cost of living. My main task is to ease the economic burden on the citizens of Israel while preserving the Israeli economy. We continue to work for all citizens of Israel."
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