Fuel prices soar amid regional war

BEIRUT — Fuel prices saw a significant increase in Lebanon on Friday, against the backdrop of regional conflict that sent global prices surging this week.

According to the pricing published by the Energy Ministry, the price of gasoline has risen by 90,000 Lebanese Liras, equivalent to one U.S. dollar.

Here are the new rates:

– 20 liters of 95-octane gasoline: 1,914,000 Lebanese Liras (an increase of 90,000 LL since last Tuesday’s rate).

– 20 liters of 98-octane gasoline: 1,957,000 LL (+90,000 LL)

– 20 liters of diesel (for vehicles): 1,651,000 LL (+240,000 LL)

– Kiloliter of mazut (used to supply private electricity generators): $838.29 (+$133.25 compared to Tuesday’s price).

– Domestic gas cylinder: 1,417,000 LL.

This price remains unchanged, as gas prices are not updated twice a week like other fuels. The gas cylinder had increased by 16,000 LL on Tuesday.

The main global risk regarding oil supplies in the context of Middle Eastern war is focused on the potential closure of the Strait of Hormuz, which connects the Gulf to the Arabian Sea.

Iran’s Revolutionary Guards warned this week against transiting through this area, while many companies have instructed their fleets to avoid it. About one-fifth of global oil supplies — nearly 20 million barrels per day — usually pass through this strategic chokepoint, transporting crude from Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates.

Added to this are the recurring attacks, since last Saturday, on Gulf oil and gas infrastructure. Facing the catastrophic scenario of a total closure of the strait and the resulting risks, oil prices have jumped this week.

Immediately after the announcement of Israeli-American strikes against Iran on Saturday morning, thousands of motorists rushed to gas stations in Lebanon, fearing a shortage. Authorities have so far sought to reassure the public, stating that there is no crisis to fear at the moment and that the country has sufficient reserves.