Beirut, Lebanon – Lebanon is bracing for further economic hardship following recent government decisions to raise taxes on gasoline and other fuels, a move that has sparked widespread protests and concerns about the rising cost of living. Although officials suggest the impact on food prices will be limited, the increases are exacerbating an already dire situation for a population struggling with soaring inflation and a crippling economic crisis.
The Ministry of Energy and Water announced the new fuel prices on February 17, 2026, with a 361,000 LBP increase per two sheets of 95 and 98 octane gasoline, a 22,000 LBP rise for diesel, and a 13,000 LBP increase for a gas canister, according to Annahar. These price hikes come on the heels of a series of tax increases approved by the Lebanese government on Monday, including a one percentage point increase in the value-added tax (VAT) to 12%, and increased fees on gasoline.
The government has defended the measures as necessary to address the country’s financial woes and fund public sector wage increases, including six additional salaries for public employees and the resolution of university professor compensation. However, the moves have been met with fierce criticism from the public and opposition groups, who argue they will disproportionately impact low-income families and further fuel inflation. Protests have erupted across the country, with demonstrators expressing anger over the rising cost of essential goods and services.
Limited Impact on Food Prices, Official Says
Despite the fuel price increases, a statement from بحصلي, as reported by nna-leb.gov.lb, suggests the impact on food prices will be “limited.” The statement did not elaborate on the specific factors expected to mitigate price increases in the food sector. This assertion comes as many Lebanese citizens are already struggling to afford basic necessities, and the potential for further price hikes remains a significant concern.
Government Defends Measures Amid Public Outcry
The Lebanese government’s decision to raise taxes has been met with widespread condemnation, with many viewing it as a further burden on a population already grappling with economic collapse. The BBC reported that the measures have been labeled a “tax massacre” by some, while others spot them as a desperate attempt to salvage the country’s finances. BBC News details the public’s reaction, highlighting the growing discontent with the government’s handling of the economic crisis.
The government argues that the tax increases are necessary to fund essential public services and address the country’s mounting debt. However, critics contend that the measures are poorly targeted and will disproportionately impact the poor and vulnerable. Al Hurra reports that the government framed the tax increases as being “under the guise of ‘salaries’”, raising concerns about transparency and accountability. Al Hurra also notes fears of a new wave of inflation as a result of the changes.
Regional Context and Growing Instability
The situation in Lebanon is further complicated by regional instability and political tensions. The recent reports of a human smuggler being present with Libya’s Prime Minister, as highlighted by Google News via Annahar, raise questions about the potential for increased illicit activities and their impact on the region. These developments add to the already complex challenges facing Lebanon as it attempts to navigate its economic and political crisis.
The government’s actions have drawn criticism from various political factions, with some calling for a vote of no confidence. Monte Carlo International reports on the growing discontent and the calls for accountability from the government. Monte Carlo International details the growing opposition to the government’s policies.
The Lebanese government is scheduled to hold further discussions on economic reforms next week. The outcome of these discussions will be crucial in determining the country’s economic trajectory and the future of its citizens. The situation remains fluid and requires close monitoring.
This is a developing story. We encourage readers to share their thoughts and experiences in the comments below.
