The Daily Star reported that Lebanon’s trade unions and taxi drivers associations geared up for strikes and demonstrations to protest against frequent increases in the prices of gasoline and other oil derivatives. Civil society groups have even joined the trade unions and drivers in their request to put a lid on the rise of gasoline prices, demanding that the government do something about the increases, which have deeply strained consumer spending and brought about a noticeable upward thrust in overall costs of living.

A statement from an alliance of civil society groups in Tripoli said that we’re calling for a treatment of the roots of the problem, which would start with placing a price ceiling of LBP 30,000 on all fuels and the deletion of taxes on gasoline and diesel. The incoming government needs to return the oil sector to the government, ending the monopoly that businesses and mafias have imposed on it. Those businesses have achieved fantastical profits at the expense of the Lebanese people.

Following the release of his weekly fuel price update which hiked the prices by LBP 900 caretaker Energy and Mr Gebran Bassil water minister of Lebanon said that he was looking into scrapping the gasoline tax as a way of stemming the tide of price increases.

However, many analysts and law-makers point out that it would not be within his rights to do so given the current government’s transitional status. The government cut taxes on gasoline by LBP 5,000 two months ago but this measure did little to stop the surge in prices of the commodity.

Economists are also concerned about the prospect of clogging revenue flows that the gasoline tax rakes in. At roughly 11% of government revenue, the gasoline tax is one of Lebanon’s most important sources of income. Any further cut in the gasoline tax would also deliver a blow to the Finance Ministry’s efforts to reduce the budget deficit.

Mr Castro Abdullah trade unionist said that “All of those who have been affected by the fuel price rise, and especially labor unions such as the GLC and the General Transport Union should act immediately and employ all means of action possible. However, few motorists believe that plans for protests will materialize.”

(Sourced from the Daily Star)