Fuel pump nozzle at a gas station in Lebanon. (Credit: Joao Sousa/L'Orient-Le Jour)
BEIRUT — Fuel prices saw a significant increase this week, in a context marked by Tuesday’s resumption of the American blockade on Iranian ports, as well as Iran’s announcement of the "closure" of the Strait of Hormuz in the aftermath. The energy ministry announced Friday, in its biweekly tariff update, a $49.52 rise per kiloliter in the price of fuel oil for generators, along with a new series of increases for other fuels, adding to the price hikes already recorded on Tuesday.
Here are the new rates:
– 20 liters of 95-octane gasoline: 2,277,000 Lebanese liras (LL) an increase of 56,000 LL since the last rate published last week.
– 20 liters of 98-octane gasoline: 2,294,000 LL an increase of 55,000 LL compared with the end of last week.
– 20 liters of diesel (for vehicles): 1,938,000 LL a significant increase of 91,000 LL since Tuesday, and 126,000 LL since last week.
– Domestic gas cylinder: 1,150,000 LL, the same price as last week.
– Kiloliter of fuel oil (used to supply private electricity generators): $996.17, a $49.52 increase compared with Tuesday.
This comes as regional tensions have sent global oil prices soaring and raised concerns about inflation, even in countries far removed from the conflict.
The United States carried out several strikes against Iran this week, provoking retaliatory Iranian attacks on American interests in the Gulf, as both sides clash over the strategic maritime route of the Strait of Hormuz.
Fatih Birol, executive director of the International Energy Agency (IEA), estimated that the world "should be worried about its energy security" if the United States and Iran do not quickly increase the flow of oil passing through the strait. "Oil security remains a crucial issue," the senior official said during an event organized by the Council on Foreign Relations. "We should be concerned, and I am, if the situation does not improve in the coming weeks."
Despite the sharp increase in energy prices, Birol noted that several factors have limited the extent of the price spike. He specifically cited China’s strategic reserves, which exceeded a billion barrels of oil before the war began, oil saved by increased use of electric vehicles and public transport, and the coordinated release by the IEA of about 400 million barrels of oil. But these measures "cannot last forever," the official warned, describing the war against Iran as "the worst energy disruption in history."
