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The Cost of the Road: How Fuel Is Draining Lebanese Incomes

Rising fuel prices in Lebanon are driving up transportation costs and squeezing the incomes of drivers and the budgets of families and students, amid weak public transport and union calls to ease the sector’s burden.

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The Cost of the Road: How Fuel Is Draining Lebanese Incomes

The price of a can of 95-octane gasoline in Lebanon reached 2.834 million Lebanese pounds ($31.66) on September 22, while fuel prices underwent 17 adjustments during the first eight months of the year, putting mounting pressure on drivers’ incomes and family budgets. Federations and unions in the road transport sector have announced a general strike for Wednesday, September 30.

Higher fuel costs squeeze drivers’ incomes

Abu Saleh, a taxi driver, said rising fuel prices had coincided with a decline in the number of passengers and made it difficult to raise fares enough to cover vehicle expenses. He added that some passengers refuse to pay 300,000 Lebanese pounds ($3.35) or 250,000 pounds ($2.79) per trip, and cannot afford to pay more than 150,000 pounds ($1.68) or 200,000 Lebanese pounds ($2.23).

Abu Saleh said a driver may wait an hour or two before finding a passenger, while the cost of operating the vehicle continues to accumulate. “We used to fill the tank for $40 or $50, but today it costs about $100 to fill the car,” he said, adding that his income at the end of a working day sometimes does not exceed $5.6.

Working only to cover the cost of gasoline

These figures reveal a squeeze on both sides of the transport market: drivers need fares that cover fuel and vehicle maintenance, while passengers’ declining purchasing power limits the ability to pass the full increase on to the cost of a trip.

Commuting costs eat into family budgets

Mustafa, a university student, said the cost of his bus journey had risen from about 100,000 Lebanese pounds to 200,000, while the cost of traveling to and from university, including additional forms of transport, had jumped from about 400,000 Lebanese pounds ($4.47) to nearly 800,000 pounds ($8.94), and could rise further when using a taxi.

Based on 22 study or working days a month, daily commuting costs of 800,000 Lebanese pounds ($8.94) bring Mustafa’s monthly cost to about 17.6 million Lebanese pounds (about $197). His family covers the cost of his daily travel to university.

Abdel Latif al-Taryaqi, head of the Federation of Workers’ and Employees’ Unions in southern Lebanon, said rising gasoline and diesel prices were putting pressure on workers and drivers alike, while wages remained unable to keep pace with the cost of living. He called for taxes and fees imposed on fuel to be addressed and for a mechanism to distinguish public drivers who rely on their vehicles as a primary source of income.

Al-Taryaqi added that the absence of an integrated and regular public transport network between areas left families, workers, students and drivers more exposed to rising fuel costs, limiting their options to private cars, taxis, buses operating on limited routes or walking longer distances.

Fuel reduces real wages and raises business costs

Economist Walid Abu Sleiman said transport costs were no longer a marginal expense in the family budget, but had become part of the “real wage,” because a worker’s income is measured by what remains of their salary after paying the cost of reaching their workplace. When income remains unchanged or rises more slowly than the cost of commuting, fewer resources are left for food, housing, energy and other needs.

Higher fuel costs also affect the cost of transporting and distributing raw materials and goods, as well as the costs of agriculture, industry, trade and services. The World Bank expects inflation in Lebanon to rise to 17.5% in 2026, driven, among other factors, by supply disruptions, higher shipping costs and oil prices, in addition to a 6.4% contraction in the Lebanese economy this year as a result of renewed conflict and its impact on domestic demand and supply chains.

Abu Sleiman cautioned against attributing inflation solely to fuel, pointing to the interplay of factors including the exchange rate, import costs, taxes and fees, and margins across different sectors. He said increasing the transport allowance could ease pressure on workers, and that linking it to fuel prices could preserve its value amid fluctuations in fuel costs, provided it reflects actual commuting costs and does not become a substitute for wage adjustments.

General strike seeks protection for transport sector

Federations and unions in the road transport sector announced a general strike, mobilization and sit-in across Lebanon on Wednesday, September 30, in protest against rising fuel prices and to demand protection for the sector and implementation of measures previously agreed upon.

The action comes amid rising living costs and the repercussions of the war, as workers, employers and the government seek new formulas for wages and transport allowances. The crisis reflects a gap between incomes and commuting costs, amid limited public transport and the pass-through of higher fuel costs to the prices of goods and services.

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