Fuel prices surge in Lebanon as inflation pressures deepen amid regional tensions

Report by Lea Fayad, English adaptation by Mariella Succar 

Fuel prices in Lebanon have risen sharply since the beginning of the year, reflecting broader economic pressures linked to regional instability and global oil markets.

The price of a gasoline canister has increased by approximately $12, rising from $14.7 to $26.7, while diesel has reached $27.9, up from $13.8.

A basket of essential goods has also increased by about 4.5% during the first five weeks of the conflict, according to available data.

While global markets have been affected by the ongoing war in the region and tensions in the Strait of Hormuz, Lebanon remains among the most exposed economies.

The country imports roughly 85% of its needs, meaning any rise in global oil prices directly increases import costs and places additional pressure on the U.S. dollar.

MP Neemat Frem warned about concerns over the balance of payments, saying supply chains remain severely disrupted globally. 

He spoke during a meeting organized by the “Project Watan al-Insan,” which brought together public and private sector representatives to discuss policies aimed at improving resource management and economic resilience.

Frem outlined measures including improving energy use, securing essential goods, and supporting productive sectors.

Despite the difficult conditions, Economy Minister Amer Bisat said import volumes of non-oil goods have declined as a result of rising prices, helping reduce dollar outflows from the country. 

He also emphasized the need to avoid supply disruptions and referred to discussions with the International Monetary Fund.

Lebanon, officials said, requires a clear economic policy to ensure economic security and strengthen productive sectors, raising questions over whether current initiatives can form the basis of a more structured approach to crisis management.