Price concerns and mixed reactions: Will Lebanon's fuel tax lead to a new wave of inflation?

Report by Theresia Rahme, English Adaptation by Yasmine Jaroudi

After the Lebanese government decided to impose a new fuel tax to fund financial grants for active and retired military personnel, questions and confusion are mounting over the impact on consumer prices across the country.

The Economy Ministry moved to reassure the public, announcing that supermarket prices would remain unchanged despite the tax increase. Industry leaders, syndicates, and business owners echoed the ministry's position, promising not to raise prices on consumer goods.

However, while those pledges offer some relief, concerns remain. 

Fuel prices directly affect a wide range of sectors, from transportation to private generator electricity, raising the likelihood of indirect price hikes in essential services.

Generator owners have already begun preparing for higher costs, while taxi and bus drivers have responded in an inconsistent manner. Some have increased fares, while others are holding steady, citing a lack of clarity on whether the new pricing structure will be permanent or adjusted.

As the public debate intensifies, all eyes are now on the government's next session, where it will decide whether to reconsider the controversial fuel tax or proceed as planned.