Lebanon’s averted fuel crisis

Fears of a renewed gasoline crisis in Lebanon have eased following the arrival of delayed fuel shipments and the resumption of unloading operations at the country’s ports. After several days of uncertainty, motorists who feared a repeat of the long fuel queues witnessed during previous economic crises have been reassured that sufficient supplies are once again entering the domestic market.

While this development has largely eliminated the immediate threat of shortages, energy experts, such as Attorney-at-law Christina Abi Haidar who spoke to The Beiruter, warn that the incident has once again highlighted Lebanon’s structural vulnerabilities, ranging from dependence on imported fuel and exposure to international market fluctuations to weak market oversight and the risk of monopolistic practices.

No immediate shortage, but continued vigilance is needed

Attorney-at-law and energy expert Christina Abi Haidar confirmed that the delayed shipments have now arrived, effectively resolving the immediate supply issue.

She explained that there is currently no reason to expect prolonged gasoline queues, as available quantities are sufficient to meet domestic demand. Nevertheless, she stressed that Lebanon’s dependence on imported petroleum products means that the country remains highly exposed to external developments affecting global energy markets.

Unlike oil-producing countries, Lebanon imports virtually all of its fuel requirements. Consequently, any disruption in international shipping routes, geopolitical tensions, or fluctuations in crude oil prices can rapidly influence domestic fuel prices and market stability.

International markets continue to shape domestic prices

Although supply has normalized, fuel prices remain closely tied to developments in international energy markets.

Abi Haidar noted that ongoing geopolitical tensions, particularly surrounding the Strait of Hormuz, continue to place upward pressure on global oil prices. As one of the world’s most strategically important maritime chokepoints for oil exports, any instability in the region can immediately influence international petroleum prices.

Since Lebanon purchases fuel at international market rates, increases in global oil prices are reflected in the weekly fuel price schedule issued by the Ministry of Energy and Water. Conversely, when international prices decline, local prices also decrease, although consumers often experience those reductions only after a considerable delay.

Fuel prices ripple across the entire economy

Higher gasoline prices affect far more than motorists filling their vehicles.

Abi Haidar explained that fuel costs are embedded throughout Lebanon’s economic value chain. Rising transportation expenses increase operating costs for businesses, distributors, supermarkets, restaurants, and service providers alike. These additional costs are frequently passed on to consumers through higher prices for goods and services.

As transportation becomes more expensive, businesses adjust their pricing structures to maintain profitability. Food products, household goods, restaurant meals, taxi fares, and delivery services all become more costly.

Everything becomes more expensive because businesses calculate their operating costs accordingly.

However, while businesses tend to increase prices immediately when fuel becomes more expensive, price reductions are often much slower once international oil prices decline. Many retailers argue that existing inventories were purchased when fuel costs were higher and therefore cannot be sold at lower prices until older stock has been exhausted.

This asymmetry contributes to persistent inflationary pressures even after global fuel markets begin to stabilize.

Market oversight remains a critical challenge

Beyond international market conditions, Abi Haidar highlighted that one of Lebanon’s greatest challenges lies in effective market regulation.

She distinguished between the responsibilities of the Ministry of Energy and Water, which determines official fuel prices, and the Ministry of Economy and Trade, which is tasked with protecting consumers against unfair commercial practices, price manipulation, and monopolistic behavior.

According to her assessment, some fuel station operators may choose to delay selling available inventories when they anticipate future supply shortages or rising prices. By withholding fuel purchased at lower prices and waiting for official prices to increase, they can maximize profit margins once scarcity develops.

Such practices, she argued, constitute exploitation of consumers and undermine confidence in the market.

In reality, they are taking advantage of citizens. Frankly, that is a form of exploitation and should be considered a serious offense.

Limited enforcement capacity

Despite the existence of regulatory responsibilities, enforcing market rules remains difficult.

Abi Haidar pointed to the repeated strikes affecting Lebanon’s public administration, including government inspectors responsible for monitoring commercial practices. When inspection mechanisms are weakened by staffing shortages or industrial action, oversight becomes significantly less effective.

The challenge extends beyond fuel stations. Supermarkets and other retailers may also exploit market uncertainty by maintaining elevated prices long after costs have declined. Without consistent inspections and meaningful penalties, businesses have limited incentive to change their behavior. Small fines often become merely another operating expense rather than an effective deterrent against anti-competitive practices.

For enforcement to have a genuine impact, Abi Haidar argued, financial penalties must be substantial enough to discourage businesses from prioritizing excessive profits over consumer welfare.

The broader economic context

Lebanon’s fuel sector cannot be viewed in isolation.

The country continues to grapple with the economic consequences of years of financial collapse, limited liquidity within the banking sector, and the ongoing costs associated with regional conflict. Fuel importers themselves face financing constraints that limit their ability to purchase large quantities of petroleum products in advance.

At the same time, households already burdened by expensive private generator subscriptions, rising transportation costs, and higher food prices remain especially vulnerable to even minor disruptions in fuel supply.

Because electricity production, logistics, healthcare services, food preservation, and commercial activity all depend on reliable fuel availability, maintaining stable supplies has become an essential component of Lebanon's broader economic resilience.

Fuel deliveries resume after temporary delays

The recent concerns were primarily triggered by delays in authorizing the unloading of fuel tankers carrying gasoline destined for the Lebanese market. As shipments remained offshore, fears quickly spread among consumers that filling stations would soon run out of fuel, prompting some motorists to rush to refuel.

However, reassurance came after the head of the Syndicate of Gas Station Owners, George Brax, announced that the fuel supply disruption had been resolved and that vessels waiting off the Lebanese coast had received authorization to unload. According to Brax, the crisis has now passed. The vessels anchored off the Lebanese coast have begun unloading their cargoes, allowing distribution companies to replenish fuel stations across the country. He also called on fuel storage facilities and distribution companies to expedite deliveries, particularly after several stations in southern Lebanon and the Bekaa were forced to close temporarily due to supply disruptions.

The return of regular deliveries means that the market is once again adequately supplied, reducing the likelihood of widespread fuel shortages in the immediate future. Nevertheless, while sufficient fuel is currently available, long-term stability will depend not only on uninterrupted imports but also on stronger market oversight, more effective enforcement against anti-competitive practices, and greater institutional capacity to protect consumers.