October 5, 2026
In light of gasoline prices reaching record levels, the Israeli Minister of Finance, Bezalel Smotrich, issued a decision to reduce the tax on fuel to ease the burden on consumers, which raised urgent questions in Lebanon about the absence of a clear government plan to confront high prices and reduce the living burdens on citizens.
The Israeli Broadcasting Authority “Kan” reported that the decision, which will be implemented as of midnight tonight, stipulates a decrease in the price of a liter of gasoline from about $2.70 to $2.54, achieving an estimated saving of about $3.27 per 20-liter can.
This measure came as a result of the price of 95 octane gasoline at self-service stations rising to unusual levels due to fluctuations in global energy markets. The cost of this tax cut amounted to about $49 million in treasury revenues, despite professional warnings issued by the Ministry of Finance regarding the possibility of recording a budget deficit.
On the other hand, the Israeli move sheds light on the reality of government policies in Lebanon, prompting the question whether Beirut is considering similar options to reduce taxes and fees on fuel, and if the scarcity of treasury revenues hinders this, what are the alternatives offered to protect the purchasing power of citizens?
Addressing this file begins with complete transparency and disassembling the components of the final price of fuel, which includes the size of government taxes and fees, import costs, as well as the profit margins of importers and station owners, as this data allows determining the percentage that can be reduced and the financial cost resulting from any anticipated government action.
While the Israeli government faced the price boom by sacrificing tax revenues for the benefit of the consumer, eyes remain on the Lebanese government to present a strategy coupled with accurate numbers and timetables, through which it clarifies the measures adopted and the timing of their actual reflection on the citizen’s bill.
