Israeli Prime Minister Benjamin Netanyahu on Sunday rejected a public calls to lower fuel taxes, saying the gasoline surcharge goes toward financing defensive military systems.

"I decided last night, together with the finance minister, on a reduction in the price of gasoline that has been set by the global market. We (the government) have lowered the gas prices for the fourth time within a year, by the cumulative amount of 0.80 shekels (0.21 U.S. dollars)," Netanyahu said at the weekly cabinet session.

A day earlier, Netanyahu decided to reduce the taxation on gas by 0.15 shekels (0.04 U.S. dollars) in order to moderate the latest increase in prices. Nevertheless, the price of one litre of 95 octane gas has reached a record high of eight shekels (2.1 U.S. dollars), angering many Israelis.

He mentioned that gas taxation in Israel is less than in many European countries.

"I want to make it clear, we do not control the global gas prices, which are increasing all over the world and in all countries. What we can do is to try and ease the burden on citizens in a responsible and measured way, and this is what we are doing," Netanyahu said.

The prime minister promised that despite the unplanned expenditure, the government will not exceed the budgetary framework.

"We need the taxes to buy more Iron Dome systems, to complete the building of the (Egypt border) fence, to finance free education for children, to pave roads and rail tracks and to help the poor and the elderly," Netanyahu said.

He slammed those who called to further lower gas prices, saying "whoever says that it is possible to lower taxes and broaden expenditures without making an account, lacks economic knowledge and is irresponsible."