Fuel pump nozzle at a gas station in Lebanon. (Credit: João Sousa / L'Orient-Le Jour)
BEIRUT — The surge in crude oil prices caused by the war in the Middle East is increasingly being felt in Lebanon. Fuel prices soared this week, with the price of a kiloliter of mazout used to fuel private generators reaching $1,455, a $127 increase in just one week.
The price of 20 liters of diesel for vehicles has also crossed the symbolic $30 mark, rising by $2.5 since last Friday, as anticipated by Georges Brax, president of the syndicate of gas station owners. Gasoline prices are now around 50 % higher than they were before the war against Iran, launched by the United States and Israel on Feb. 28.
The increases directly reflect the rise in global oil prices, which is factored into the Energy Ministry’s pricing mechanism. Since the beginning of September, the price of Brent crude, the international benchmark, has risen from around $94 to $104 per barrel. U.S. West Texas Intermediate (WTI) has similarly risen from around $90 to $101.
Prices have been driven higher in particular by disruptions caused by the war in the Strait of Hormuz and threats to the Bab al-Mandeb, two strategic waterways for global oil trade. The conflict is affecting not only the transport of crude oil but also refining capacity.
Concerns in several sectors
The surge in prices has raised concerns across several sectors. After bakers, who raised the price of a packet of white Arabic bread this week from 75,000 Lebanese Liras (LL) ($0.84) to LL 80,000 ($0.89), the land transport sector is now stepping up its demands.
Bassam Tleiss, president of the sector’s unions and associations, called on the government on X to “immediately” grant public transport drivers a monthly allowance of LL12 million, a measure decided in February to offset rising fuel costs, “without delay or procrastination.”
Contacted by L’Orient-Le Jour, Tleiss sharply criticized the government’s handling of the issue. “We are facing a government and a state that treats the people as if they were a business and we were their customers,” he said. He also criticized the pricing mechanism, arguing that price decreases are passed on more slowly than increases.
The possibility of a shortage was also raised by Hassan Jaafar, secretary of the syndicate of gas station owners, who warned on local channel MTV of a risk that could last two weeks.
Limited mazout quantities, but no shortage
For now, the Lebanese market remains supplied, Maroun Chammas, president of the Association of Petroleum Importing Companies (APIC), told L’Orient-Le Jour. He said there is no shortage despite delays in the supply chain, which usually occur at loading ports because of the high number of buyers turning to the refineries that remain operational after many were taken offline by the war. “There is no interruption in supply, but there are delays,” he said. “Our stocks are sufficient, even if we are not overstocked.”
Most importers in Lebanon source their fuel from Greek refineries, which in turn obtain their crude mainly from the Gulf, particularly Saudi Arabia.
On the ground, two gas stations and a mazout distributor contacted by our publication confirmed that there is no shortage, although they reported more limited quantities. In Hazmieh, one station said it was no longer immediately accepting new customers, who now have to sign up on a waiting list. Another, in Beirut, said it was reducing delivery volumes for large orders. The same applies to a distributor in Metn. “We have mazout and we continue to distribute it. There is no shortage,” he said.
New fuel prices:
– 20 liters of 95-octane gasoline: LL 2,810,000, an increase of 131,000 liras since the last published rate last Friday.
– 20 liters of 98-octane gasoline: LL 2,828,000, also a 131,000 liras increase compared to last Friday.
– 20 liters of diesel (for vehicles): LL 2,768,000, a significant rise of 229,000 liras compared to last week.
– Domestic gas canister: LL1,221,000, a slight increase of 31,000 liras compared to last week.
– Kiloliter of mazout for private generators: $1,455, a sharp rise of $127 compared to last Friday.
