Fuel prices increase after cabinet decision to adopt February's pricing

BEIRUT — Fuel prices rose sharply Thursday evening — except for gas cylinders — after a cabinet decision to raise prices to fund monthly grants for active and retired military personnel.

The cabinet decided to adopt the same prices that were in effect when the government was formed on Feb. 8, 2025. Back then, the fuel prices were higher than they were prior to this decision due to the decrease in fuel prices worldwide. 

The Energy Ministry shared on Thursday evening the new fuel rates:

- 20 liters of 95-octane gasoline: 1,489,000 Lebanese pounds (+100,000 LL compared to the previous pricing on Tuesday)

- 20 liters of 98-octane gasoline: 1,529,000 LL (+101,000LL)

- 20 liters of diesel (for vehicles): 1,393,000 (+174,000) 

- Domestic gas cylinder: 910,000 LL (unchanged)

– Kiloliter of fuel oil (used to power private electrical generators): $716.51, an increase of $96.39 compared to the last schedule.

The cabinet decision says: "Adopting the prices of liquid fuels — excluding liquefied gas, butane, propane, and both types of fuel oil —at the same value that was reported on the date of the formation of the government on 02/2025." 

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A source familiar with the decision clarified that the fuel oil excluded from the price hike does not refer to the type used for generators. This explains the sharp increase in the kiloliter price of fuel oil. The decision generally applies to gasoline and diesel for engines and vehicles, but excludes liquid gas and fuel oil used in power plants.

The decision states: “This price shall be effective immediately and the difference shall be included under the customs transactions section in the fuel pricing structure table, and the value of that difference, as determined on the date of this decision, shall remain fixed in all future schedules.” This means that future changes in fuel prices will be based on Thursday’s new rates, with the fixed difference remaining unchanged.

When asked whether this implies a price increase, Information Minister Paul Morcos said after the cabinet meeting: “No, there is no increase, but rather a return to the price that was prevailing.” He explained that the adjustment would help fund urgent social needs, including the grants approved during the session.

The cabinet decided to provide monthly grants of 14 million LL for active-duty military personnel and 12 million LL for retirees, effective July 1, 2025. It also approved a draft expedited law to open an exceptional credit line in the 2025 state budget to finance these grants, pending final figures from the Finance Ministry. The draft law will be referred to Parliament.

Land transport union reaction

Bassam Tlais, head of the Land Transport Union, criticized the decision, stating: “While the reform and rescue government was looking for revenues to fix the affairs of the state, and to save its treasury through new charges, it found no doors to knock on except those of citizens and drivers.”

He added that the government is burdening drivers further while failing to enforce laws or protect the sector from fake public license plates and unregulated private vehicles. “In light of the above, we call on the unions and syndicates of the land transportation sector to meet next week to consult and take the appropriate decisions in this regard,” his statement concluded.