Urgent Appeal: Protect Lebanon’s Productive Sectors from Harmful Fuel Taxes

The Lebanese Private Sector Network expresses deep concern over the government’s recent decision to impose new taxes on gasoline and diesel fuel for individuals and businesses. While the state’s fiscal pressures are acknowledged, this decision risks inflicting serious harm on Lebanon’s already fragile productive sectors, particularly local pharmaceutical and agro-food industries.

These two sectors are vital to public health, food security, and economic resilience. They rely on diesel and transport at every stage, from importing raw materials to production, quality control, cold storage, and nationwide distribution. The added tax will cascade across these stages, compounding existing challenges like electricity shortages, currency devaluation, and limited access to finance.

These increased costs will inevitably be passed on to consumers, undermining the affordability of essential medicines and food. The new tax will also damage the export competitiveness of Lebanese products at a time when boosting foreign currency inflows is critical.

Burdening these strategic industries contradicts the government’s own objectives of supporting local production and ensuring food and medicine security.

We therefore call on the government to:

1. Exempt local pharmaceutical and agro-food manufacturers from the new fuel taxes;

2. Engage in structured dialogue with affected sectors before implementation;

3. Develop targeted support plans to protect jobs and shield critical industries from inflationary shocks.

This is not the time to undermine the sectors that feed, heal, and employ the Lebanese people. Recovery and resilience require deliberate, balanced policies that protect our productive base. The Lebanese Private Sector Network remains committed to working hand in hand with government institutions to design pragmatic solutions in pursuit of our shared national goals.