Diesel and cooking gas rise while petrol slips slightly
Local prices moved in opposite directions: the diesel canister rose to 2,608,000 lira from 2,576,000 lira and the gas cylinder to 1,545,000 lira from 1,494,000 lira, while the 95-octane petrol canister fell to 2,611,000 lira from 2,651,000 lira. The euro edged up to 100,194 lira, while gold slipped slightly to $3,918 an ounce. On the corporate side, Dubai-based Al Habtoor Group said it will sell all its assets in Lebanon, amid warnings that a new war would be a disaster for an economy exhausted by seven years of crises. On services, attention is on electricity as Electricité du Liban moves to cut power to non-paying subscribers, and on gas after the completion of the Tripoli–Syria pipeline rehabilitation.
Diesel and gas up, petrol down
According to the published indicators, the diesel canister rose to 2,608,000 lira versus 2,576,000 lira previously, and the 10 kg gas cylinder to 1,545,000 lira versus 1,494,000 lira. In contrast, the 95-octane petrol canister fell to 2,611,000 lira from 2,651,000 lira, and 98-octane to 2,629,000 lira from 2,669,000 lira. This means heating and cooking costs went up, while filling a car cost slightly less, though prices in lira remain high.
Euro edges up, gold slips
The euro rose to 100,194 lira versus 99,880 lira previously, while the official dollar rate stayed at 89,500 lira. The gold ounce fell to $3,918 from $3,922, and the 21-karat gram to $110.21 from $110.34. In banking news, the central bank revoked the licence of Iran's Bank Saderat in Lebanon, while the sector faces a tax claim from the Finance Ministry of between $500 and $600 million related to accounting differences in Eurobond valuations.
Electricity, internet and water under pressure
Electricité du Liban announced it is carrying out its threat to cut power to subscribers who have not paid their bills, under a "pay or darkness" approach. In telecoms, Ogero centres are facing power outages that threaten internet services in 17 areas. The Litani River Authority also said it detected a change in the colour of the lower basin's water to black and red and took samples for laboratory tests, amid concerns over irrigation and drinking water.
An investment exit, tax files and a budget
Dubai-based Al Habtoor Group said its board approved selling all its assets and investments in Lebanon, after suspending operations on 28 January citing losses exceeding $1.7 billion. On taxes, Finance Minister Yassine Jaber said paying taxes and fees is now possible in cash in dollars or lira or by bank card, noting possible extra fees on international cards, while a budget worth $7 billion is on the table. The head of the Lebanese Companies Association, Bassem El-Bawwab, warned that a war would be a disaster, with estimates that the economy could shrink from about $40 billion to $35 billion, a contraction of about 8%.
What awaits households in the coming days
A fourth round of Lebanon–Qatar talks on an integrated electricity project covering natural gas and renewables is expected in the coming days, according to Energy Minister Joseph Saddeh. Economist Jassim Ajaka, meanwhile, expects Lebanon to remain on the FATF grey list, warning of the fallout from stalled reforms. For households, heating and gas costs remain a direct pressure on family budgets, with continued risk of power and internet rationing.
What to watch
- Diesel and gas prices as seasonal heating demand kicks in
- Outcome of the fourth round of Qatar talks on electricity and gas
- Efforts to settle the tax dispute between the Finance Ministry and banks
- Electricity bill collection measures and their effect on household subscriptions