Lebanon has 43rd lowest retail gasoline prices and 33rd lowest diesel prices in the world

Economic Research | Lebanon This Week | Lebanon This Week 578 | Lebanon has 43rd lowest retail gasoline prices and 33rd lowest diesel prices in the world | Lebanon | Byblos Bank

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Lebanon This Week 578

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Lebanon has 43rd lowest retail gasoline prices and 33rd lowest diesel prices in the world

Figures issued by the German development agency GIZ show that the retail price of gasoline in Lebanon was the 43rd lowest among 179 countries globally, but came as the sixth highest among 19 Arab countries included in the survey. The retail price of gasoline in Lebanon was $0.88 per liter as of mid-November 2018 compared to $0.74 per liter in November 2016. The retail price of gasoline in Lebanon was similar to prices in Azerbaijan and the U.S. It was higher than prices in Botswana and Uzbekistan ($0.87 per liter each), and Afghanistan, Tajikistan and Trinidad & Tobago ($0.86 per liter each), while it was lower than retail prices in Suriname ($0.91 per liter), Guatemala ($0.9 per liter) and Chad ($0.89 per liter). Regionally, the retail price of gasoline in Lebanon was lower than prices in Palestine ($1.71 per liter), Djibouti ($1.69 per liter), Jordan ($1.5 per liter), Mauritania ($1.21 per liter), and Morocco ($1.18 per liter).

In parallel, the retail price of diesel in Lebanon was the 33rd lowest globally, and the eighth highest regionally. The retail price of diesel in Lebanon was $0.69 per liter at mid-November 2018 compared to $0.47 per liter in November 2016. GIZ compiles retail prices of gasoline and diesel in 179 countries every two years.

GIZ classified countries in one out of four categories that are "High Subsidies", "Subsidies", "Taxation" and "High Taxation", depending on each country's fuel price-related policy. It indicated that fuel prices in the United States, at $0.88 per liter, tend to cover the average cost of one liter of gasoline that includes industry margin, value-added tax and sales tax, among other costs. As a result, countries that have gasoline prices of $0.88 per liter or more must have adopted a non-subsidized policy for gasoline, and would be classified under the "Taxation" category, while they would fall under "High Taxation" category when retail gasoline prices are above $1.25 per liter. Consequently, with a price of $0.88 per liter, Lebanon came in the "Taxation" category. Also, Lebanon came in the "Subsidies" category in terms of its retail price of diesel, given that the retail price of diesel in Lebanon is less that the average cost-covering price of $0.88 per liter globally. Prices of diesel in this category range between $0.41 per liter and $0.87 per liter.