Rising costs are squeezing Lebanese households

For millions of Lebanese, the rising cost of living has become a defining feature of everyday life. From filling a car’s fuel tank and paying for transportation to buying food, accessing healthcare, and covering education expenses, households are facing a continuous increase in essential costs while wages remain largely unable to keep pace.

Although these increases do not represent the overall inflation rate, they reveal a deeper challenge: the prices of goods and services that Lebanese citizens rely on every day are becoming increasingly expensive, placing additional pressure on already strained household budgets.

Energy costs at the center of the inflationary pressure

Among the various components driving the increase in living expenses, energy remains the most influential factor due to its impact on almost every sector of the economy.

Fuel prices in Lebanon have continued to rise, adding further pressure on households and businesses already facing increasing operational costs. The latest price adjustments saw another increase for the second consecutive week, with the price of 95-octane gasoline reaching 2,834,000 LBP per 20 litres, an increase of 24,000 LBP, while 98-octane gasoline rose to 2,852,000 LBP, also increasing by 24,000 LBP. Diesel prices reached 2,823,000 LBP, following a rise of 55,000 LBP, while household gas increased to 1,249,000 LBP, an increase of 28,000 LBP.

The increase in fuel prices has significantly affected employees who rely on private vehicles for their daily commute. The price of a 20-litre gasoline canister, which stood at around $15 at the beginning of 2026, has risen to more than $30 in September, exceeding 2.8 million LBP. As a result, transportation costs have become a major component of household expenses rather than a secondary cost.

This has been primarily affected by regional instability and higher insurance costs for maritime transportation. The so-called war risk premiums imposed by international insurance companies on shipments heading toward Lebanon have increased due to heightened security risks in the region. These additional costs have contributed to higher import expenses for fuel and other goods. As Lebanon remains heavily dependent on imports, fluctuations in international energy markets and regional security conditions continue to directly influence domestic prices.

The increases illustrate how fuel prices have become one of the most immediate pressures affecting daily life in Lebanon. For households relying on private vehicles, transportation costs represent a growing share of monthly expenses, while businesses face higher costs for logistics, electricity generation, and production.

According to Lebanon’s Central Administration of Statistics (CAS), liquid fuel prices increased by approximately 45% between February and July 2026, while transportation costs rose by 42% during the same period. Vehicle fuel and lubricants also recorded a 40% increase, making mobility significantly more expensive for workers, students, and families.

The impact has extended beyond fuel purchases themselves. Costs related to vehicle maintenance and repair, including oil changes and car washing services, increased by 15%. Other transportation-related expenses, such as parking subscriptions, garage rentals, and vehicle rental services without drivers, rose by 24%, while air transportation costs increased by 25%.

The significance of these figures lies in the fact that transportation costs do not remain limited to individuals travelling from one place to another. Higher fuel prices increase the cost of transporting goods, operating businesses, and delivering services, creating a broader inflationary effect throughout the economy.

For many Lebanese workers, commuting has become a substantial financial burden. The official transportation allowance currently stands at 450,000 LBP per working day, equivalent to around 9.9 million LBP per month for employees attending work 22 days monthly, with a current minimum wage of approximately $350. However, continued fuel price increases have raised questions about whether a fixed allowance remains sufficient or whether it should be linked directly to transportation costs.

Food prices rise as households adjust their consumption

While food price increases have been less dramatic than energy-related increases, their impact is arguably more immediate because they affect daily consumption.

CAS data shows that meat prices increased by 13% between February and July 2026, while fruit prices rose by 11% and bread and cereals by 10%. Prices of bottled water, non-alcoholic beverages, fruit juices, and vegetables increased by approximately 9%.

For many families, these are unavoidable expenses rather than optional purchases. As food already represents a significant share of household spending, even moderate increases can substantially affect purchasing power.

The rise in costs has also affected restaurants and cafés, where prices increased by around 11%, reflecting the broader impact of higher operational expenses, including electricity, fuel, and raw materials.

Healthcare and education have become increasingly expensive

The social consequences of inflation become particularly severe when essential services such as healthcare and education are affected.

Healthcare costs increased significantly, with hospital services rising by 16% between February and July 2026. Dental services and other medical services also increased by approximately 10%.

Unlike many consumer goods, medical treatment cannot always be postponed or avoided. For households already struggling with declining purchasing power, rising healthcare costs create difficult choices between seeking treatment and managing other expenses.

Education has also become more expensive. Prices of educational programs, including private tutoring, language courses, and computer training, increased by 19%. This adds further pressure on families already facing high school and university-related costs.

Beyond essential needs, inflation has affected cultural and recreational activities. Cultural services, including cinemas, theatres, concerts, festivals, satellite subscriptions, and photography services, increased by 26%. Sports and leisure services rose by 13%, organized holidays by 15%, and beauty and hair services by approximately 15%.

The wage dilemma: Incomes struggle to follow prices

The growing gap between salaries and living expenses remains one of the most serious challenges facing Lebanese workers.

As prices continue to rise, labor unions have warned that the current wage structure no longer reflects the actual cost of living. The General Confederation of Labor, headed by Bechara al-Asmar, has called on the government to declare an immediate economic emergency and establish a ministerial committee chaired by Prime Minister (PM) Nawaf Salam to address the worsening economic and social conditions.

The union has also demanded the urgent reactivation of the Wage Index Committee to reassess salaries and benefits, particularly as public sector employees are expected to receive increases equivalent to up to six additional salaries in 2027. Al-Asmar argued that, under the current difficult economic conditions, measures must be taken to increase the minimum wage, improve cost-of-living allowances, and adjust salary supplements for private sector workers.

“The current situation requires immediate action,” labor representatives have argued, warning that employees are increasingly unable to cover basic expenses, including transportation, food, healthcare, and education costs.

The General Confederation of Labor has also recommended organizing a warning strike, with its timing to be determined during a meeting of its executive council in coordination with public sector unions and teachers’ associations in both the private and public sectors.

Employers, meanwhile, continue to face their own financial pressures. Businesses argue that increasing wages without addressing the broader rise in production costs risks further accelerating inflation, as companies would be forced to transfer additional expenses to consumers.

The bakery sector reflects this difficult balance between maintaining affordability for consumers and absorbing rising operational costs. The Head of the Union of Bakery and Oven Syndicates in Lebanon, Nasser Srour, rejected calls for bakery participation in strikes, stressing that bakeries remain committed to ensuring the availability of bread.

Srour stressed that as long as essential inputs, including diesel, flour, wheat, and other materials required for bread production, remain available, bakeries will continue operating normally. However, he acknowledged that bakeries are facing significant financial losses due to the continued increase in diesel prices, which has become one of the largest components of production costs.

The wage debate therefore highlights a broader economic dilemma facing Lebanon: workers require higher incomes to preserve purchasing power, while businesses struggle with rising energy, taxation, import, and production costs.

For Lebanese citizens, the challenge is thus increasingly clear: daily expenses continue to rise while incomes struggle to adapt. Without measures aimed at reducing production costs, stabilizing energy prices, improving economic conditions, and protecting purchasing power, the burden of inflation risks becoming an increasingly permanent feature of everyday life. So, the question remains: How long can Lebanese citizens continue to endure and sustain themselves in a country they are proud to call home but can no longer afford to live in?