AG gives Smotrich go-ahead to slash fuel tax, leading to lower prices at pump

2 September 2026, 9:56 pm

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Fuel prices displayed at a gas station in Tel Aviv, April 9, 2026. (Miriam Alster/FLASH90)

Attorney General Gali Baharav-Miara has given the green light to Finance Minister Bezalel Smotrich to cut an excise tax on gasoline, which will lead to lower gas prices for Israeli drivers.

The move comes as gas prices hit a record NIS 8.25 per liter, equivalent to $10.49 per gallon. The price, set by the government, will now be NIS 7.75 per liter, equivalent to $9.70 per gallon.

Gas prices have spiked worldwide, including in Israel, due to the US war with Iran and Iran’s obstruction of the Strait of Hor
muz.

There was speculation that Baharav-Miara would nix the reduction of the excise tax because she would deem it a case of improper electioneering less than two months before Israel’s October 27 election.