Cost of living squeezes households: fuel prices fall, gas rises
Petrol and diesel prices fell in the latest schedule while the gas cylinder price rose, as an economic report warned of a recession that could approach 10 percent and inflation between 15 and 17 percent, with consumption declining and purchasing power eroding. Attention turns to today's Cabinet session at Baabda amid a dispute over electricity funding, with Energy and Water Minister Joe Saddi demanding $50 million to buy fuel oil. The issue of hospital and health insurance costs is also back in focus, as hospitals seek a 25 percent increase in the hospitalization bill for 2026, which would likely raise premiums paid by citizens.
Prices and living conditions
The fuel distributors' syndicate announced a new schedule in which the price of a 95-octane petrol canister fell to 2,825,000 lira (-12,000 lira), 98-octane to 2,843,000 lira (-11,000 lira), and diesel to 2,692,000 lira (-34,000 lira), while the price of a 10 kg gas cylinder rose to 1,383,000 lira (+50,000 lira). According to a media report, consumption in Lebanon is declining under the weight of high prices and eroding purchasing power, with warnings of a recession that could approach 10 percent and inflation between 15 and 17 percent, while government measures remain of limited effect.
Services
Attention is on the Cabinet session scheduled for 3 p.m. today at the Baabda Palace, where Energy and Water Minister Joe Saddi is demanding $50 million to buy fuel oil and increase electricity supply hours, insisting on his boycott of government sessions, while the premiership said the discussion will continue in a special meeting tomorrow, Friday, without announcing funding or an end to the boycott. In the health sector, hospitals are seeking a 25 percent increase in the hospitalization bill for 2026, after a 6 percent rise in 2025, while insurance companies warn that any increase will be reflected in the premiums citizens pay. On water, the National Litani River Authority asked to accelerate and complete sewage and treatment plant projects in the river basin and around Lake Qaraoun.
The lira, banks and deposits
The euro stood at 100,230 lira against 100,704 lira in the previous reading, while the dollar was recorded at 89,500 lira at the official rate. An opinion article raises the question of the gold reserve at the Central Bank, estimated at about 286 tonnes, noting that the state owns the bank but is its biggest debtor to the tune of about $60 billion according to an estimate by Governor Karim Saeed, while the bank's debts to commercial banks, and therefore to depositors, amount to about $78 billion. According to media reports, Lebanon is awaiting its Financial Action Task Force (FATF) evaluation.
Public finances, the state and reforms
Lebanon's economic bodies announced their full support for the measures taken by Finance Minister Yassine Jaber against companies refusing to pay their tax obligations, and called for broadening the tax compliance base and pursuing evaders, without imposing additional tax burdens on compliant institutions and citizens. Prime Minister Nawaf Salam is following the project to rehabilitate the oil pipeline reaching Syria's Baniyas and extend it toward Tripoli, to reconnect Lebanon to the route for exporting Iraqi oil to the Mediterranean. The European Union also announced an additional 10 million euros to support the humanitarian response in Lebanon.
Wages, salaries and work
Media reports examine the psychological and social impact of successive crises on young people in Lebanon, from the economic collapse and political turmoil to the latest war. They review studies and surveys showing rising psychological distress, despair and sleep disorders among students, and a desire by the majority of young people to emigrate, with warnings of worsening social conditions. This comes amid declining consumption and warnings of a recession that is squeezing job opportunities in the local market.
What to watch
- Today's Cabinet session in Baabda and the fate of electricity funding ($50 million) and the energy minister's boycott, plus tomorrow's Friday special meeting
- Hospitals' demand for a 25 percent increase in the 2026 hospitalization bill and its likely impact on health insurance premiums
- The next fuel price schedule and the movement of petrol, diesel and gas prices
- The FATF evaluation, developments in the EU humanitarian support file, and extending the Iraqi oil pipeline toward Tripoli