Slight Drop in Fuel Prices, Cooking Gas Cylinder Rises
Gasoline and diesel prices fell slightly, while the household cooking gas cylinder rose to 1,418,000 Lebanese pounds from 1,383,000. On the monetary and banking front, Finance Minister Yassine Jaber said he does not expect any amendment to the bank restructuring law, as the Lebanese delegation continues its talks with the IMF in Bangkok. Pressure on households remains high, with continued electricity and water cuts in the south and eroding public sector salaries. The humanitarian response plan's funding gap reached about one billion dollars, threatening aid to around 1.5 million people.
Prices and Cost of Living
Fuel prices fell slightly: the 95-octane gasoline canister dropped to 2,795,000 pounds from 2,802,000, the 98-octane to 2,813,000 from 2,820,000, and diesel to 2,589,000 from 2,614,000. By contrast, the 10-kg cooking gas cylinder rose to 1,418,000 pounds from 1,383,000. According to an Anadolu report, around 6,600 hectares of olive trees in southern Lebanon were damaged, threatening the livelihoods of thousands of families. This coincided with the launch of agricultural grants worth $20 million, with individual grants ranging between $500 and $35,000.
The Pound, Banks and Deposits
Finance Minister Yassine Jaber told Asharq Bloomberg he does not expect the Constitutional Council to recommend amendments to the bank restructuring law, stressing that the government sees no constitutional violation in it. The euro stood at 100,177 pounds against 99,983 previously, while the official dollar rate remained at 89,500 pounds. Money and banking law expert Tawfiq Chambour argued that the deposit recovery account may benefit banks more than depositors, since depositors do not hold direct accounts at the central bank. In this context, licensed money exchangers, around 300 of them, fear a repeat of the 2020 arrests scenario over the case of a $200 million transfer from Iran.
Salaries, Wages and Work
The head of the Public Administration Employees Association, Raed Hamadeh, said living conditions for public sector workers have reached an extremely difficult stage, with the continued erosion of salary values and rising living costs. He said the association is going ahead with closing every Friday until a fair, unified salary scale is approved, demanding a clear government plan with a timetable instead of temporary fixes. In Tripoli, El Mina municipality workers escalated their movement after three months without pay, warning they would stop working and halt garbage collection if their dues remain unpaid.
Services: Electricity, Water, Transport
The board of Electricité du Liban announced its preliminary approval to restart the Zouk and Jieh plants, with each unit to operate only after its safety and readiness are verified and inspection results documented by the manufacturer. MPs Neemat Frem and Sajih Attieh stressed the need for radical reform of the sector, noting that switching from fuel oil to gas could save about $3 billion a year. In the south, a UN team in Lebanon report said power and water cuts and damage to homes, schools and health facilities still make daily life extremely difficult, even as families return home.
Public Finances and the State
In Bangkok, the Lebanese delegation headed by Finance Minister Yassine Jaber is continuing its meetings with the IMF and the World Bank Group, amid reports of one billion dollars and decisive negotiations. According to figures cited by Lebanon Debate, funding received for the humanitarian response plan reached $622.58 million out of $1.62 billion required, or about 38 percent, leaving a gap of nearly one billion dollars and depriving around 1.5 million people of urgent aid. Meanwhile, former central bank governor Riad Salameh attended a preliminary interrogation session at the Beirut Justice Palace before a public hearing date is set.
What to watch
- The Constitutional Council's decision on the bank restructuring law and the review submitted by the President.
- The outcome of the IMF talks in Bangkok and the amount of financing that may materialize.
- The restart of the Zouk and Jieh plants and the manufacturer's safety inspection results.
- Public sector employees' and municipal workers' moves over salaries and services.