Food, Fuel and Energy Subsidies
Basic Information
Country
Geographic area
Programme type
Programme Details
Programme objectives
Price subsidies for diesel, bread, domestic production of tobacco, and subsidies to Electricité du Liban;
Legal framework: Subsidises on cereals: Legislative Decree 143 of 12 June 1959 (amended by Decree no. 2896 of 28 December 1973
Karam, A., G. Zureiqat, and N. Rammal. 2015. Social Protection and Safety Nets in Lebanon. Brighton: Institute of Development Studies. Accessed 26 July 2017. <http://www.ids.ac.uk/files/dmfile/SocialprotectionandsafetynetsinLebanon.pdf>.
UNICEF Lebanon. 2017. Personal communication.
Start date
1993
Different start dates for different subsidies: wheat farming subsidy 1993; bread subsidies 1997
Reference: UNICEF Lebanon. 2017. Personal communication.
Targeting and eligiblity
Targeting methods
Universal
Targeted areas
Nationwide
Target groups
Universal
Coverage and other information
Type of benefits
Subsidised prices
Amount of benefits
Excise rates in Lebanon were reduced from LBP10,000/20 litres to LBP5,000/20 litres in March 2011; it is assumed that the optimal excise rate is set at USD0.334/ litre, and the gasoline subsidy (i.e. forgone revenues) is calculated accordingly
Ministry of Environment and UNDP. 2015. Fossil Fuel Subsidies in Lebanon: Fiscal, Equity, Economic and Environmental Impacts. Beirut: Ministry of Environment and United Nations Development Programme. Accessed 27 July 2017. <http://www.lb.undp.org/content/lebanon/en/home/library/environment_energy/Fossil-Fuel-Subsidies-in-Lebanon.html>.
Benefit delivery mechanism
Direct subsidies given to oil products for final consumption (as in reduced excise rates or VAT exemption, for instance) or in the form of indirect subsidies, such as treasury transfers to Electricité du Liban, through which consumers only pay one third of the recovery rate
Ministry of Environment and UNDP. 2015. Fossil Fuel Subsidies in Lebanon: Fiscal, Equity, Economic and Environmental Impacts. Beirut: Ministry of Environment and United Nations Development Programme. Accessed 27 July 2017. <http://www.lb.undp.org/content/lebanon/en/home/library/environment_energy/Fossil-Fuel-Subsidies-in-Lebanon.html>.
