In numbers: Lebanon's diesel prices nearly doubled since late February
The price of a kiloliter of diesel stood at around $1,500.
by L'Orient Today staff · L'Orient TodayBEIRUT — At 52,840 Lebanese Liras, or nearly 60 cents, per kilowatt-hour (kWh), the price of electricity supplied by private generators rose again in September, amid a general rise in crude oil prices, which have slightly eased in recent days.
According to the new rates set by the Energy Ministry, which applies the prices with a certain lag, the latest increase was somewhat less steep than the previous one: LL4,599 in one month, or 9.5% — half the increase recorded in August. Since February, the kWh price has risen by 75%, from LL30,244, or around $0.34.
The price of diesel used by the ministry for its calculations is LL2,675,217, or $29.82 for 20 liters, equivalent to $1,491 per kiloliter. It has nearly doubled since late February, when the ministry used a price of LL1,398,957 for 20 liters, or $15.60, equivalent to nearly $780 per kiloliter.
A generator owner told us that he could not recall seeing such high prices since the ministry began setting generator tariffs. Even during the oil price spike following the outbreak of war between Russia and Ukraine in 2022, prices rose to nearly $130, but diesel remained around $100 per kiloliter.
Cost of war
Two factors explain the difference. First, prices of refined petroleum products move differently from crude oil prices and are sensitive to other factors, such as the availability of refining capacity, supply and demand, and transformation and transport costs, which are especially high amid disrupted supply chains and refining capacity in the Middle East and Russia, as well as regional conflicts. It is also important to note that Banque du Liban (BDL, central bank) was still subsidizing fuel imports when the war in Ukraine began, under a system established after the start of Lebanon’s crisis that was not fully scrapped until September 2022.
Bills from generators are therefore likely to be very high for consumers who were forced to run air conditioners during the summer, as September was mostly hot despite a relative drop in temperatures. Notably though, Electricité du Liban (EDL) did not come close to the blackouts seen in August.
As is the case each month, generator owners can increase the kWh price by 10% in the most remote areas — those above 700 meters in altitude and/or in rural areas — while fixed charges remain unchanged: LL385,000 ($4.29) for the monthly plan with a maximum intensity of 5 amperes (A), and LL685,000 ($7.64) for 10A. For connections above 10A, the ministry maintains a surcharge of LL300,000 ($3.34) for each additional 5A bracket.
For installations connected to a three-phase meter, such as elevators, an additional flat rate is calculated based on a reference capacity measured by the amperage of one phase, without being multiplied by three.
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