Lebanon Rationalizes Subsidized Food Basket

Customers shop at a supermarket in Beirut, Lebanon January 24, 2020. (Reuters)
Customers shop at a supermarket in Beirut, Lebanon January 24, 2020. (Reuters)
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Lebanon Rationalizes Subsidized Food Basket

Customers shop at a supermarket in Beirut, Lebanon January 24, 2020. (Reuters)
Customers shop at a supermarket in Beirut, Lebanon January 24, 2020. (Reuters)

Lebanon’s Ministry of Economy announced it would rationalize the food basket by reducing the number of subsidized commodities by 55 to 60 percent, which means reducing its cost from USD 210 million a month to less than USD 100 million.

According to the ministry, the step would contribute to prolonging the period of support for additional months, especially with the diminishing reserves of the Central Bank in foreign currencies.

“Theoretically, the rationing of subsidies should affect the citizen directly, but in practice the situation will remain the same,” said a grocery store owner in Beirut.

He told Asharq Al-Awsat that subsidized goods were not originally present in the market in sufficient quantities, so people in most cases bought the goods at an unsubsidized pricing based on the dollar exchange rate on the black market.

“The difference between the subsidized and unsubsidized commodity was not large, and in most cases it did not exceed LBP 2,000 ($1.33 according to the official exchange rate and approximately 20 cents on the dollar price in the black market),” a Beirut resident told Asharq Al-Awsat.

The Ministry of Economy had launched the so-called subsidized food basket last July, with the aim of curbing the rise of prices amid a scarcity of foreign currencies that Lebanon needs for its imports.

The basket included - before rationalization - 30 basic foodstuffs, in addition to 270 commodities classified as raw materials used in manufacturing.

Since its launch, the food basket was widely criticized, especially as it did not help to reducing commodity prices, as repeatedly shown by the price index.

Last week, the ministry referred two companies to the Public Prosecution Office, as their subsidized products were seen on the shelves of supermarkets outside Lebanon, which raised concern about illegal smuggling.

“The smuggling of subsidized goods and selling them abroad brings big profits in fresh dollars to the merchants,” said Zuhair Berro, the head of the Consumer Protection Association.

“Smuggling is not the only way of manipulation,” he added, noting that some merchants “store the subsidized goods to later sell them when the subsidies are lifted, so they make enormous illegal profits.”



US Targets Houthis with Fresh Sanctions Action

Houthi members ride a pick-up truck while on patrol amid tensions with Israel, in Sanaa, Yemen, 18 July 2025. (EPA)
Houthi members ride a pick-up truck while on patrol amid tensions with Israel, in Sanaa, Yemen, 18 July 2025. (EPA)
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US Targets Houthis with Fresh Sanctions Action

Houthi members ride a pick-up truck while on patrol amid tensions with Israel, in Sanaa, Yemen, 18 July 2025. (EPA)
Houthi members ride a pick-up truck while on patrol amid tensions with Israel, in Sanaa, Yemen, 18 July 2025. (EPA)

The United States on Tuesday imposed sanctions on what it said was a Houthi-linked petroleum smuggling and sanctions evasion network across Yemen and the United Arab Emirates in fresh action targeting the Iran-backed militant group.

The US Treasury Department in a statement said the two individuals and five entities sanctioned on Tuesday were among the most significant importers of petroleum products and money launderers that benefit the Houthis.

"The Houthis collaborate with opportunistic businessmen to reap enormous profits from the importation of petroleum products and to enable the group’s access to the international financial system," said Deputy Secretary of the Treasury Michael Faulkender.

"These networks of shady businesses underpin the Houthis’ terrorist machine, and Treasury will use all tools at its disposal to disrupt these schemes."

Among those targeted on Tuesday was Muhammad Al-Sunaydar, who the Treasury said manages a network of petroleum companies between Yemen and the United Arab Emirates and was one of the most prominent petroleum importers in Yemen.

Three companies in his network were also designated, with the Treasury saying they coordinated the delivery of approximately $12 million dollars’ worth of Iranian petroleum products with a US-designated company to the Houthis.

Since Israel's war in Gaza against the Palestinian group Hamas began in October 2023, the Iran-aligned Houthis have been attacking vessels in the Red Sea in what they say are acts of solidarity with the Palestinians.

In January, Trump re-designated the Houthi movement as a foreign terrorist organization, aiming to impose harsher economic penalties in response to its attacks on commercial shipping in the Red Sea and against US warships defending the critical maritime area.

In May, the United States announced a surprise deal with the Houthis where it agreed to stop a bombing campaign against them in return for an end to shipping attacks, though the Houthis said the deal did not include sparing Israel.

The Israeli military attacked Houthi targets in Yemen's Hodeidah port on Monday in its latest assault on the militants, who have been striking ships bound for Israel and launching missiles against it.