HaKivunim

Cost of Living

Electricity and fuel prices

The state should cap electricity and fuel prices, even if that costs the budget billions.

Electricity rose by more than 8.6% in August 2026 and petrol passed NIS 8 a litre. The cost of living is the first concern of 34% of Israelis.

What is at stake

The cost of living is the first concern of 34% of Israelis, well ahead of security. Electricity rose more than 8.6% in August 2026, petrol passed NIS 8 a litre, and inflation is running at 4.4% a year.

The case for

  • Electricity is not a free market: a public operator dominates the grid and the regulator already sets the tariff.
  • A tariff rise hits low-income households proportionally harder. A cap is the fastest transfer to administer.
  • Energy feeds into the price of everything else. Holding it down slows inflation upstream rather than downstream.

The case against

  • A cap subsidises the villa as much as the two-room flat. Targeted support costs less and reaches further.
  • The bill lands on a budget already stretched by defence at about 8% of GDP. Today's cap is tomorrow's tax.
  • A frozen price discourages investment in generation and the grid, and sets up the next shortage.

Both sides get the same number of points at comparable length. That is a rule of this site, not a coincidence.

What the next Knesset could decide

The finance ministry and the Electricity Authority set tariffs; the Knesset decides subsidies in the budget law. This is an annual budget trade-off, not a one-off reform.

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