Financial aspects of gasoline pricing in Lebanon

Abstract

Lebanon imports each year $1.5 billion worth of gasoline and fuel oil in order to satisfy the transportation sector’s demand. It is important to mention that this sector consumes 40percent of total energy consumption. This high dependency is explained by the largely underdeveloped public transportation sector: mismanagement of infrastructure, old and wrecked vehicles, lack of security and maintenance, etc; which force the population to rely on their personal cars. The ministry of Energy and Water signs the pricing table, sets the custom fees of importation, imposes profit margins for gas stations and fixes the tax. Most of the Lebanese population is perfectly aware of the weekly changing gasoline prices. Households follow closely this subject since they spend a significant part of their income on it.