Finance Minister Bezalel Smotrich said in an X/Twitter post on Tuesday that he will move to decrease fuel taxes in an attempt to prevent a pending rise in the price of gas.
"I instructed the professionals in the Treasury today to deepen the subsidization in order to cancel the expected increase in fuel prices," he wrote.
The move comes as the price of gas in Israel was set to increase by 52 agorot per liter at midnight between Wednesday and Thursday, bringing it to an all-time high of NIS 8.27 per liter.
A potential increase in Israeli gas prices would join an approximately 13% rise in global fuel costs amid continued concerns about supply-chain disruptions and the vulnerability of the global energy market.
Smotrich met with senior Finance Ministry officials earlier on Tuesday to discuss the issue, describing the tax reduction as "appropriate at this time in order to push growth in the Israeli economy," N12 News reported.
On September 6, Smotrich signed an order to cut the price by 50 agurot, managing the deficit through a separate tax reduction.
Treasury's professional echelon: Smotrich's gas tax cut unwise
The move, approved by the prime minister's legal advisor, was seen as unwise by the Treasury's professional echelon, according to N12.
The finance minister made a similar move in July 2023 to avoid a gas price increase, with the Finance Ministry continuously applying such tax provisions since April 2022.
Walla contributed to this report.