A gas station in Hazmieh, Lebanon. (Credit: Mohammad Yassine/L'OLJ)
BEIRUT — Fuel prices rose sharply Thursday night — with the exception of gas cylinders — following a Cabinet decision to raise rates in order to fund monthly subsidies for active and retired military personnel.
The government opted to reinstate fuel prices at the levels in effect when the current Cabinet was formed on Feb. 8, 2025, despite a roughly 17 percent drop in global crude oil prices since then.
Sharp increase in generator fuel costs
The Energy Ministry released the following updated rates:
- 20 liters of 95-octane gasoline: 1,489,000 Lebanese liras (up LL 100,000)
- 20 liters of 98-octane gasoline: LL 1,529,000 (up LL 101,000)
- 20 liters of diesel (for vehicles): LL 1,393,000 (up LL 174,000)
- Domestic gas cylinder: LL 910,000 (unchanged)
- Kiloliter of fuel oil (for private generators): $716.51 (up $96.39)
A source familiar with the matter said the decision applies to gasoline and diesel used in vehicles and generators but excludes liquefied petroleum gas and fuel oil used in power plants.
“This rate takes immediate effect, and the difference will be integrated into the customs operations section of the fuel pricing scale,” the official decision stated. “The value of this difference, as determined on the date of this decision, will remain fixed in all future pricing.”
This means future fluctuations in fuel prices will be based on Thursday’s new rates, with the increase locked in as a fixed baseline.
Union criticism
“There is no increase, but rather a return to the prevailing price,” Information Minister Paul Morcos said following the Cabinet session. He added that the adjustment would allow the government to finance aid approved during the meeting.
The Cabinet agreed to grant monthly subsidies of 14 million Lebanese pounds for active military personnel and 12 million pounds for retirees, starting July 1. It also approved an expedited draft law to open a special line of credit in the 2025 state budget to fund the aid, pending final figures from the Finance Ministry. The bill will be sent to Parliament.
Bassam Tleiss, head of the Unions of Drivers and Land Transport Workers, criticized the move.
“While the government seeks revenue to stabilize the state and rescue the treasury, it found no other door to knock on but that of citizens and drivers,” he said.
Tleiss called on transport unions and federations to convene next week to determine their response.
Humanitarian convoy reaches Rmeish, Ain Ibl, Dibil despite obstacles