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Israel Gasoline Price Falls to NIS 7.77 per Liter on 5 October

Israel’s maximum self-service price for 95-octane gasoline drops 50 agorot to NIS 7.77 per liter from 5 October 2026, following a signed excise reduction.
Entry078 Date Time3 min MechanicCarCody Team
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Israel’s maximum self-service price for 95-octane gasoline falls by 50 agorot to NIS 7.77 per liter from midnight into Monday, 5 October 2026. The reduction follows a temporary excise cut signed by Finance Minister Bezalel Smotrich; it is a tax-side change passed through to the controlled pump price, not evidence that international gasoline prices fell by the same amount.

What is the new gasoline price in Israel?

From 5 October 2026, the maximum self-service price for 95-octane unleaded gasoline outside Eilat is NIS 7.77 per liter, including VAT. That is 50 agorot below the previous controlled price. These are regulated maximum prices, not a guarantee that every station charges exactly the maximum. The Ministry of Energy and Infrastructure’s 4 October notice gives the updated prices.

Location and service Maximum price effective 5 October VAT treatment
Outside Eilat, self-service NIS 7.77 per liter Included
Eilat, self-service NIS 6.58 per liter Excluded
Full-service surcharge outside Eilat 26 agorot per liter Included
Full-service surcharge in Eilat 22 agorot per liter Excluded

Eilat has separate pricing and VAT treatment, so its listed amount should not be compared directly with the outside-Eilat price without accounting for VAT.

Why is the price dropping?

The immediate mechanism is a reduction in fuel excise signed by Finance Minister Bezalel Smotrich. The Jerusalem Post reported that Prime Minister Benjamin Netanyahu and Smotrich agreed to the cut and that it lowers the maximum self-service price from NIS 8.27 to NIS 7.77 per liter. The 50-agorot drop describes the change in the controlled consumer price; it does not mean every component of gasoline pricing fell by 50 agorot. The available reporting does not provide an itemized calculation of all components behind this update. The Jerusalem Post’s account attributes the announcement to the ministers’ agreement.

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How the latest cut fits the recent price changes

On 1 October, Globes reported that the controlled 95-octane price had risen by 52 agorot to NIS 8.27 per liter, an all-time high. Earlier, a temporary order had cut excise by NIS 0.50 per liter from 7 September through 31 October, following a 16-agorot rise to NIS 8.25, according to Globes’ 3 September report. The October 1 report said the prior relief was due to run through the end of October and put the state’s lost tax revenue from that earlier subsidy at NIS 268 million. That fiscal figure is Globes’ report, not a figure in the Ministry’s October 5 price notice. Globes’ 1 October report covers the preceding price and the discussion of further relief.

Is the cut linked to the election?

The timing makes the election context relevant: contemporaneous coverage puts Israel’s Knesset election on 27 October 2026, and the September excise cut drew criticism as “election economics.” That criticism is an attributed political judgment, not proof of the minister’s motive. The documented mechanism for the new lower price is the excise reduction; the sources establish timing and criticism, but do not establish electoral motivation.

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The Jerusalem Post quoted a Government Press Office statement accompanying the announcement: “At a time when fuel prices are soaring all over the world, we are ensuring that they do not soar in Israel.” The report does not identify an individual speaker for that line.

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What happens when the temporary relief ends?

The cited coverage says the earlier temporary subsidy was scheduled to run through the end of October, immediately after the election. It does not establish what the controlled price will be once that relief expires, or whether another order will extend or replace it. The October 1 coverage of an extension and the October 4 report of a newly signed order concern separate developments; they should not be treated as identical legal or fiscal measures.

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