Israeli Government to Suspend Gasoline Price Hike Following Public Pressure

A day after hundreds of thousands took to the street to protest the high cost of living, finance minister is expected to suspend the rise in the price of gasoline for one month.

Finance Minister Yuval Steinitz is expected to sign a temporary order freezing a 30-agorot ($0.087) rise in gasoline prices Sunday. The price change was due to rising world oil prices.

According to the order, the state will absorb the price at a cost of about NIS 80 million during August. On September 1 a special committee is expected to present its findings on Israeli gasoline prices.

steinitz - Haaretz - July 12 2011

The high price of gasoline is one of the issues stirring up a nation-wide protest movement in the past two weeks.

Earlier Sunday, Prime Minister Benjamin Netanyahu announced the formation of a ministerial committee to negotiate with the activists. The team will also formulate solutions to the current economic challenges plaguing the government.

The announcement came in the wake of Finance ministry Director Generalf Haim Shani's resignation Sunday over disagreements with Steinitz.