JERUSALEM (VINnews) — Finance Minister Bezalel Smotrich is expected to sign an order reducing Israel’s fuel excise tax as motorists face a new increase that will match the highest gasoline price on record.

The Energy and Infrastructure Ministry said Sunday that the maximum regulated price for 95-octane unleaded gasoline at self-service pumps will rise 16 agorot at midnight Monday, reaching NIS 8.25 per liter on Sept. 1. That figure equals the previous peak set in September 2012.

The surcharge for full-service pumps will rise 1 agora to 26 agorot per liter, bringing the full-service ceiling to NIS 8.51. In Eilat, which is exempt from VAT, the self-service price will rise 14 agorot to NIS 6.99 per liter.

Energy officials attributed the increase to a roughly 6% rise in international gasoline prices, partly offset by a stronger shekel against the dollar. Those market moves added about 10 agorot per liter. An inflation-linked update to the excise tax added about 5 agorot, and a semiannual revision of the marketing margin added 1 agora.

Smotrich’s planned tax cut is intended to cushion households and businesses from further jumps tied to higher global energy costs and the blockade on Iran. Ministry officials said the size of the reduction is still being finalized so lower prices can reach consumers later this week.

Once signed, the order would apply nationwide and take effect with the next scheduled fuel-price update. Officials said the cut is meant to offset much of the expected additional increase at the pump, not reverse the Sept. 1 adjustment already announced.