MK Hilik Bar (Hamachane Hatzioni) has proposed a law that would prohibit the posting of prices that cannot possibly be paid in cash, such as a price of 19.99. Generally that is rounded up to 20 when paying in cash, and 49.99 is rounded up to 50, prices like 19.95 etc. When paying via credit card or check one can pay the exact amount, but in cash the customer ends up paying a higher price than the one posted.

Many other MKs across the spectrum have signed on to this law proposal and it has passed the approval of the Finance Committee of the Knesset to be prepared for voting. There is a bit of a dispute over this as to whether or not it is already covered by already existing consumer protection laws or not, but Bar insists on passing the law because the current directives are not enforced, and turning it into an explicit law will improve the situation.
source: Behadrei

The way things work, the stores and other providers will convert everything to the higher price, and then even the people not paying with cash will end up paying more as well. Besides, the government already announced its efforts to minimize the use of cash, so this should really be used as just another incentive to get people to not use cash.