With gas prices in Israel set to tie an all-time record in the coming days, Finance Minister Bezalel Smotrich is aiming to slash what drivers will pay at the pump by cutting the excise tax on fuel.
His plan, however, may be deemed illegal, according to Hebrew media reports. Channel 12 reported that with less than two months to go until the election, Attorney General Gali Baharav-Miara may classify Smotrich’s tax cut as a prohibited instance of electioneering.
Gas prices have soared worldwide since the beginning of the Iran war six months ago, as Tehran’s obstruction of the Strait of Hormuz has choked off a key pathway for the global supply of oil and gas. Ongoing tensions between the US and Iran over control of the strait have also fueled uncertainty in the oil market.
In Israel, where a government authority sets gas prices, the price of the standard 95 octane benzine has risen from NIS 6.88 per liter in February 2026 (equivalent to $8.75 per gallon) to the just-announced rate of NIS 8.25 per liter in September (equivalent to $10.49 per gallon).
Bat Sheva Abuhatzira, the managing director of Israel’s fuel authority, told the Ynet outlet that the new rate is due to a combination of a rise in global oil prices and changes in the US dollar-to-shekel exchange rate.
