- 04
- June
- 2025
With no solutions in sight, the state is dipping into the tank. In a move that borders on tragicomedy, the government has chosen to raise fuel prices – officially to fund social aid programs. The premise? Take a little more from everyone to give a little to a few. The result? The many shoulder the burden so the few can breathe – at a steep cost.
The Lebanese government seems to be taking its cue from an old maxim: “When in trouble, raise the taxes.” In a decision that hit like a bombshell, authorities announced a sharp hike in fuel prices – despite a global drop in oil costs. The official rationale? To fund social aid. The logic? Ease the burden on the poor by adding to the strain on everyone else.
Economy Minister Amer Bisat attempted to reassure the public: no need to panic – prices, especially for bread, will remain stable. But that promise feels anything but certain. Bread lovers shouldn’t get too comfortable: while loaves may be spared, electricity remains a rare luxury. Meanwhile, the cost of private generators – essential for daily life – is poised to soar in line with fuel prices.
Amid rising costs, a small ray of hope emerges: Hani Bohsali, the President of the Importers of Food Products Union, and Nabil Fahed, the President of the Supermarket Owners’ Union, assured This is Beirut that food prices will not immediately rise in response to the fuel hike. Private companies are currently absorbing the extra costs, which they say remain “manageable” for the time being. If this holds, grocery bills could stay stable, at least temporarily.
However, Bohsali cautioned, “The government cannot indefinitely keep raising taxes while the private sector shoulders the burden. It must focus on combating smuggling and improving import controls to finance the country differently.”
Fahed noted that the recent global drop in oil prices partially offsets the tax increase, but if prices rise steadily, consumer costs will inevitably follow.
Meanwhile, Ahmad Hoteit, the President of the Millers’ Union, told This is Beirut that the Economy Minister has asked them to hold off raising wheat, flour and bread prices until a solution is found. Special exemptions may even be granted to industrial producers to prevent shortages and price hikes. Millers admit they cannot sustain absorbing these costs forever, but are doing so for now.
The Restaurant and Hospitality Sectors Push Back
Tony Ramy, the President of the Syndicate of Restaurants, Cafés, Nightclubs and Pastry Shops, has firmly spoken out against the recent fuel price increase. In a strong statement, he condemned the decision, saying it only adds to soaring operational costs in an already fragile sector burdened by some of the highest electricity prices in the world. Rather than supporting this crucial pillar of Lebanon’s economy and employment, the government is pushing it to the brink, making local and international competition nearly impossible.
Ramy called for an immediate reversal of the price hike and urged meaningful energy reform to prevent productive sectors from bearing the heavy cost of poor public management.
Echoing these concerns, Pierre Achkar, the President of the Federation of Tourist Unions and the Hoteliers’ Union, expressed his “deep regret over the government’s decision.” He warned that this measure would “negatively impact production and operating costs at a time when businesses desperately need revival after years of crises and more recently, war.”
Achkar highlighted that “Lebanon’s electricity costs are among the highest worldwide, severely undermining the regional competitiveness of the country’s tourism industry compared to destinations like Turkey, Egypt and Jordan.” He added with frustration, “Instead of lowering tariffs for tourism establishments, as was repeatedly asked of Energy Minister Walid Fayad and his predecessors, we are faced with a decision that contradicts those appeals.”
He concluded by urging the government to reconsider this “unfair” decision or at least exclude tourism and hospitality sectors, emphasizing that “there are many alternative revenue sources the state could explore before imposing further taxes on productive industries.”
The Domino Effect: Businesses Under Pressure
Across many sectors, the impact is immediate: rising costs for production, transportation and logistics. Struggling to stay afloat, some companies may resort to layoffs, while others risk complete shutdown. With every poorly conceived decision, Lebanon’s delicate economic fabric tears a little more.
Meanwhile, the average Lebanese citizen continues footing the bill – whether it’s to get to work, keep the fridge running or send their children to school. Every fuel price hike hits an already stretched budget harder. Bills pile up, anxiety deepens. Caught between quiet resignation and simmering frustration, the people bear the burden without complaint.
While the goal of supporting the most vulnerable is admirable, the method raises serious concerns. By taxing mobility and energy, the government risks further weakening Lebanon’s middle class and the key economic sectors that sustain the country. When will there be an economic strategy that stops sacrificing Paul to save Peter?
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