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Lebanon: Importers of Basic Commodities Warn Against Ending Subsidies

People shop at a supermarket in Beirut, Lebanon August 28, 2017. REUTERS/ Mohamed Azakir
People shop at a supermarket in Beirut, Lebanon August 28, 2017. REUTERS/ Mohamed Azakir
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Lebanon: Importers of Basic Commodities Warn Against Ending Subsidies

People shop at a supermarket in Beirut, Lebanon August 28, 2017. REUTERS/ Mohamed Azakir
People shop at a supermarket in Beirut, Lebanon August 28, 2017. REUTERS/ Mohamed Azakir

Since the beginning of 2020, the Lebanese have been suffering from a continuous and sharp rise in commodity prices, mainly due to the devaluation of the local currency against the US dollar in the parallel market.

The Central Bank (BDL) has been subsidizing basic commodities, including wheat, medicine and fuel. However, reports have emerged over the BDL’s inability to continue to subsidize the basic commodities, which would put them at the mercy of the fluctuating exchange rate.

Lifting subsidies on medicine would be a “humanitarian catastrophe”, as described by the head of the Drug Importers Syndicate, Karim Gebara.

“Citizens pay 35 percent of the medicine bill and they can barely afford it; so what if the subsidy is lifted and the value of the bill is doubled?” he asked.

In remarks to Asharq Al-Awsat, Gebara said it was difficult to define the increase in prices.

“There will be no fixed price or threshold; the prices of medicine will be directly linked to the dollar exchange rate on the black market,” he noted.

If we consider that the exchange rate remains at its current value of LBP 7,500, then this means the price of any drug will be multiplied by five.

Gebara stressed that so far, the Syndicate has not been officially informed of BDL’s ending of subsidies, hoping that such a move, if taken, would not affect the medical sector.

The Syndicate of Gas Station Owners has not been officially informed either, but warned of a real crisis facing the sector and citizens if BDL goes ahead with such a plan.

The head of the syndicate, Sami Braks, stressed that lifting the subsidies would automatically mean an adjustment of fuel prices.

Economic Expert Elie Yashouei said that ending the subsidies has become inevitable, adding: “We will reach it sooner or later.”

“In light of the drastic decline in BDL’s foreign reserves … it no longer has enough funds to support basic commodities or even the 300 commodities in the approved food basket,” he said.

In the event that the prices of goods were determined by the current rate of the US dollar on the black market (USD1= LBP7,500), the price of a pack of bread will exceed LBP5,000, a kilo of chicken will be sold for LBP50,000, a kilo of meat for LBP80,000, and a box of Panadol medicine for LBP15,000.

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Arab World

Lebanese Army Says Soldier Wounded by Gunfire from Syria

Vehicles line up at Jdeidat Yabous border crossing with Lebanon, amid an increased cross-border movement in Jdeidat Yabous, 45 kilometers west of Damascus, Syria, 03 March 2026. (EPA)
Vehicles line up at Jdeidat Yabous border crossing with Lebanon, amid an increased cross-border movement in Jdeidat Yabous, 45 kilometers west of Damascus, Syria, 03 March 2026. (EPA)
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Lebanese Army Says Soldier Wounded by Gunfire from Syria

Vehicles line up at Jdeidat Yabous border crossing with Lebanon, amid an increased cross-border movement in Jdeidat Yabous, 45 kilometers west of Damascus, Syria, 03 March 2026. (EPA)
Vehicles line up at Jdeidat Yabous border crossing with Lebanon, amid an increased cross-border movement in Jdeidat Yabous, 45 kilometers west of Damascus, Syria, 03 March 2026. (EPA)

Lebanon's military said on Saturday that a soldier was moderately wounded by gunfire coming from Syria a day prior in the country's northeast.

"A Lebanese soldier sustained moderate injuries as a result of gunfire from the Syrian side targeting a Lebanese army post in the Qasr-Hermel area," the military said, adding that "soldiers at the post returned fire".

"An investigation is underway to determine the circumstances of the incident in coordination with the relevant Syrian authorities."

On Friday, Lebanese Prime Minister Nawaf Salam said Syria's President Ahmed al-Sharaa informed him that Syrian troop building along the border with Lebanon was "solely aimed at strengthening border control and maintaining internal Syrian security", and that similar measures were taken on the border with Iraq.

Arab World

Israel Defense Minister Warns Lebanon to Disarm Hezbollah or Face ‘Heavy Price’

A man inspects the debris of destroyed buildings at the site of an Israeli airstrike that targeted Haret Hreik neighborhood in Beirut's southern suburbs, on March 7, 2026. (AFP)
A man inspects the debris of destroyed buildings at the site of an Israeli airstrike that targeted Haret Hreik neighborhood in Beirut's southern suburbs, on March 7, 2026. (AFP)
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Israel Defense Minister Warns Lebanon to Disarm Hezbollah or Face ‘Heavy Price’

A man inspects the debris of destroyed buildings at the site of an Israeli airstrike that targeted Haret Hreik neighborhood in Beirut's southern suburbs, on March 7, 2026. (AFP)
A man inspects the debris of destroyed buildings at the site of an Israeli airstrike that targeted Haret Hreik neighborhood in Beirut's southern suburbs, on March 7, 2026. (AFP)

Israel's Defense Minister Israel Katz warned the Lebanese government on Saturday to disarm Hezbollah or "pay ‌a very ‌heavy price." 

"We (ISRAEL) ‌have ⁠no territorial claims ⁠against Lebanon, but we will not accept a situation ⁠where what ‌existed ‌for many ‌years — firing ‌from Lebanese territory toward the State of ‌Israel — is renewed," Katz said in ⁠a ⁠statement.  

"Therefore, we are turning and warning: act and take action before we act even more." 

The United Nations special coordinator for Lebanon on Saturday urged Lebanon and Israel to enter talks to negotiate an end hostilities after the outbreak of a renewed Israel-Hezbollah war.  

"As bad as things are today, they are set to get even worse," Jeanine Hennis-Plasschaert said.  

"Talks between Lebanon and Israel can be the game changer needed to save future generations from going, time and again, through the same nightmare".  

In December, Lebanese and Israeli civilian representatives engaged in their first direct talks in decades as part of a meeting of a committee monitoring the November 2024 ceasefire between Israel and Hezbollah.  

Lebanon was engulfed by the expanding Middle East war on Monday, after Hezbollah fired missiles at Israel to avenge the death of Iranian supreme leader Ali Khamenei in US-Israeli attacks on Iran. 

Arab World

Hezbollah’s Rejection of ‘Surrender’ Stalls Macron Initiative to Halt War

Lebanese President Joseph Aoun receiving former prime ministers Fouad Siniora, Tammam Salam, and Najib Mikati (Lebanese Presidency). 
Lebanese President Joseph Aoun receiving former prime ministers Fouad Siniora, Tammam Salam, and Najib Mikati (Lebanese Presidency). 
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Hezbollah’s Rejection of ‘Surrender’ Stalls Macron Initiative to Halt War

Lebanese President Joseph Aoun receiving former prime ministers Fouad Siniora, Tammam Salam, and Najib Mikati (Lebanese Presidency). 
Lebanese President Joseph Aoun receiving former prime ministers Fouad Siniora, Tammam Salam, and Najib Mikati (Lebanese Presidency). 

French President Emmanuel Macron’s initiative has failed to break the political stalemate surrounding the ongoing war in Lebanon, as Hezbollah rejects what it describes as “surrender” and insists on pressing ahead with the confrontation.

Lebanese and international observers view Hezbollah's fighting as support for Iran in its conflict with Israel and the United States. At the same time, Washington’s continued silence regarding the renewed hostilities in Lebanon has drawn notice.

Lebanese sources familiar with the ongoing contacts said Hezbollah has declined to engage in negotiations after Parliament Speaker Nabih Berri conveyed a call to return to the ceasefire agreement reached in November 2024, which ended the previous round of fighting.

Activists involved in the communications channel quoted senior Hezbollah officials as saying that it was “too early to speak of negotiations.”

Lebanese ministerial sources said President Joseph Aoun informed Macron that any initiative should be presented to Berri, who oversees negotiations on behalf of Hezbollah.

However, visitors to Berri told Asharq Al-Awsat that Macron had only informed him of his intention to send vehicles and equipment to the Lebanese Armed Forces.

Deputy Speaker of Parliament Elias Bou Saab, speaking after meeting the president, referred to “ongoing diplomatic efforts.”

“There are contacts with many parties,” he said. “The media has reported on them, whether French or, in particular, American. But so far we have not reached a breakthrough that we can speak about. The effort is still ongoing, and I believe the contacts made yesterday by the president, as well as the call between the Speaker of Parliament and President Macron, helped reduce attacks that had been planned against Lebanon, including areas that were ultimately not targeted.”

He added: “I can say the diplomatic effort has achieved a measure of success. We must meet these efforts internally with solidarity. Those concerned in Lebanon must also cooperate with the president, the prime minister, and the speaker of parliament so that we can emerge from the current crisis.”

Meanwhile, former prime ministers Najib Mikati, Fouad Siniora, and Tammam Salam visited the president and issued a statement condemning what they described as “the continuing Israeli aggression and crimes against Lebanon and the Lebanese people.”

They voiced support for government decisions affirming that the authority to decide on war and peace must rest exclusively with the state and for enforcing the principle that weapons should be held solely by the Lebanese state across all Lebanese territory. They also called for broad national support for these measures.

Prime Minister Nawaf Salam, for his part, told Arab and foreign ambassadors during a meeting that decisions on war and peace must remain in the hands of the state. He noted that the government is continuing to work with various international partners to halt Israeli attacks.

Salam reiterated Lebanon’s willingness to negotiate and stressed the need to spare facilities and property from damage amid the ongoing escalation. He emphasized that Lebanon “did not choose this war.”

As diplomatic activity intensified, Foreign Minister Youssef Raji held a phone call with Oman’s Foreign Minister Badr Albusaidi, asking Muscat to use its diplomatic influence with the relevant parties to prevent the conflict from being drawn onto Lebanese territory.

Raji also received calls from several European foreign ministers, including Germany’s Johann Wadephul, Ireland’s Helen McEntee, Spain’s José Manuel Albares, Belgium’s Maxime Prévot, and Montenegro’s Ervin Ibrahimović.

The ministers collectively expressed solidarity with Lebanon while welcoming the Lebanese government’s decision to ban Hezbollah’s military and security activities and require the group to surrender its weapons. They also affirmed their readiness to provide the necessary humanitarian assistance.

In turn, Raji expressed deep appreciation for the supportive positions of his counterparts and urged them to mobilize their international contacts to press for an end to the attacks and to spare civilian infrastructure from being targeted.