---
title: "Energy Prices Worsen Living Standards in Lebanon | Ghazi Mahmoud"
url: https://ghazimahmoud.com/en/articles/2026-04-09-2ccc3f/
lang: en
description: "Lebanon continues to be subjected to Israeli attacks, despite the ceasefire announcement issued by US President Donald Trump last Tuesday, April 7, just one hour before the expiration of the deadline he had set for Iran to open the Strait of Hormuz to international shipping, brandishing his threat to destroy what he called \"Persian civilization\" in the event of non-compliance."
---

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# Energy Prices Worsen Living Standards in Lebanon

[Brig. Gen. (Ret.) Dr. Ghazi Mahmoud](https://ghazimahmoud.com/en/about/)

9 Apr 2026 · 5 min read

[Energy, oil and gas](https://ghazimahmoud.com/en/articles/energy/)[The Lebanese economy](https://ghazimahmoud.com/en/articles/leb/)

Lebanon continues to be subjected to Israeli attacks, despite the ceasefire announcement issued by US President Donald Trump last Tuesday, April 7, just one hour before the expiration of the deadline he had set for Iran to open the Strait of Hormuz to international shipping, brandishing his threat to destroy what he called "Persian civilization" in the event of non-compliance.

Lebanon also continues to bear the economic repercussions of the US-Israeli war on Iran despite its halt, especially since the blockade of shipping in the Strait of Hormuz posed a direct threat to the security of global energy supplies and helped push oil and gas prices to unprecedented levels not seen in four years, since the outbreak of the Russia-Ukraine war, exacerbating the cost-of-living burdens on the Lebanese.

This war has caused a crisis akin to the oil crisis the world witnessed in the 1970s, which resulted from Arab countries imposing an embargo on oil exports to the United States and other Western nations in 1973 over their support for Israel in its war against Egypt and Syria. Current indicators, however, suggest that the present crisis may prove more severe and more complex.

Many countries moved swiftly to confront disruptions in their energy markets with urgent measures, including releasing part of their strategic oil reserves in order to cushion the shock to the markets. The European Union and the Group of Seven countries are also working to coordinate joint efforts to ensure greater stability in those markets. In addition, some governments have resorted to cutting fuel taxes and rationing consumption, as well as accelerating alternative energy projects to reduce reliance on Middle Eastern supplies.

Lebanon, however, which depends almost entirely on fuel imports, is among the countries hardest hit by rising global energy prices. This is set to compound the economic burdens weighing on the country, given that it has yet to recover from its deep economic crisis, in addition to the repercussions of the Israeli aggression that followed the Gaza support war on October 8, 2023, and the 66-day war in 2024.

Notably, fuel in Lebanon is subject to steep, compounded levies, and in February 2026 the government approved an additional fee of around 320,000 Lebanese pounds per canister of gasoline. Including value-added tax, the total tax burden rises to roughly 25% to 30% of the final price, even before factoring in the effects of global price increases, a relatively high level compared with peer economies that has fueled inflationary pressures and eroded purchasing power.

At the same time, the global rise in energy prices has been accompanied by a marked increase in maritime shipping and insurance rates, which is directly reflected in the prices of fuel oil and other petroleum products in Lebanon and drives up inflationary pressures that intensify the cost-of-living crisis, deepening poverty and social vulnerability and weakening citizens' purchasing power. These repercussions are evident in a series of negative economic effects, most notably:

- Higher electricity bills, whether supplied by Électricité du Liban or by private generators, as rising global prices drive up the cost of both the gas oil used for generators and the fuel oil used for the utility's power plants. - Higher domestic production costs in the agricultural and industrial sectors, due to reliance on energy to run tractors and water pumps in agriculture, as well as to power generators and industrial equipment. - Higher overland transport costs for industrial and agricultural goods and products. - Higher commuting and travel costs for individuals, whether using private or public transport. - Compounded increases in the prices of goods and services, resulting from the combined effect of import, shipping, and domestic transport costs.

The rapid surge in fuel prices accelerates inflation rates, particularly in the food and energy categories, feeding directly into the consumer price index and in turn eroding the purchasing power of wages, amid relatively stagnant salaries that have failed to keep pace with rising prices. This is likely to widen the spread and rate of poverty, push up unemployment and underemployment rates, and dampen economic activity.

Rising prices also alter household spending patterns, increasing the share of total income spent on food and energy and forcing families to reorder their consumption priorities at the expense of education, healthcare, and savings. Given the state's weak fiscal capacity and high levels of public debt, the scope for government intervention to ease the burden on citizens is shrinking.

Concerns over deteriorating living standards in Lebanon are not confined to rising fuel prices and their direct repercussions, but extend to broader economic dimensions, foremost among them:

- A growing likelihood of a decline in remittances from Lebanese working in the Gulf states, amid escalating regional tensions and the accompanying threats to the security of those countries. - Heightened risks of the Lebanese economy entering a new phase of recession, especially since Lebanese industries rely largely on imported inputs affected by rising global prices and shipping costs, weakening the competitiveness of Lebanese products. - The loss of sources of income for a large number of households, whether because businesses have ceased operating in areas threatened by the Israeli occupation, because residents have been displaced from their homes, or because farmers have abandoned their land, had their activities disrupted, and lost their agricultural harvests. - A rising cost of living and reduced access to basic services, driven by increased demand for goods and services in areas hosting displaced people, which already suffer from limited absorptive capacity.

All of the above shows that rising energy prices do not merely constitute a crisis in a single sector, but act as a source of pressure reshaping Lebanon's overall economic and social indicators and pushing living standards into further decline. In the absence of effective social protection policies, and amid stalled efforts to develop Lebanon's oil and gas wealth, Lebanon's capacity to contain these repercussions remains limited, leaving the crisis poised to worsen, not only on the economic front, but also in terms of social stability, should turmoil in global energy markets persist.

Translated from Arabic with AI. [Read it in Arabic](https://ghazimahmoud.com/articles/2026-04-09-2ccc3f/)

## Published in

- [Channel 23](https://ch23.com/Article/352993/أسعار-الطاقة-تُفاقم-مستوى-المعيشة-في-لبنان)
- [MTV Lebanon](https://www.mtv.com.lb/news/1679546)
- [Anbaa Online](https://anbaaonline.com/news/322746)
- [Lebanon Files](https://www.lebanonfiles.com/2026/articles/باقلامهم/أسعار-الطاقة-تُفاقم-مستوى-المعيشة-في-ل/)
- [Al-Duha magazine](https://dhohamagazine.com/أسعار-الطاقة-تُفاقم-مستوى-المعيشة-في-ل/)
- [OZ Arab Media](https://ozarab.media/أسعار-الطاقة-تُفاقم-مستوى-المعيشة-في-ل/)

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[18 Mar 2026 · A Regional War with Global Economic Repercussions · Channel 23, MTV Lebanon ](https://ghazimahmoud.com/en/articles/2026-03-18-c3ba38/)

[4 Mar 2026 · The Global Economy in the Crosswinds of the War on Iran · Channel 23, Lebanon Files ](https://ghazimahmoud.com/en/articles/2026-03-04-843174/)