By the Numbers: The Ministry of Economy Acts to Control Prices

The Ministry of Economy and Trade is closely monitoring price developments in various Lebanese regions, particularly as inflation rates rose during the wartime period. The following statement provides a detailed explanation of the causes of inflation and the executive and regulatory measures being taken by the Ministry. The Ministry also presents in the attached data — with figures and images — the results of its monitoring of prices for 60 commodities and how they have changed since the beginning of the war to date.

1- Causes of Inflation

The recent rise in prices is primarily attributable to external and structural factors.

First, a notable increase in imported inflation. Global energy prices have risen significantly — Brent crude by 51% and diesel by 86% — increasing the cost of domestic production. Shipping costs and transport insurance premiums have also risen sharply due to elevated risk in the region, directly increasing the cost of imports.

Second, given Lebanon's heavy reliance on imports, it is natural for these global price increases to be reflected in the domestic market. Diesel oil is one of the most prominent channels through which these pressures are transmitted, as it is a key commodity in various economic activities including electricity generation, transport, agriculture, and food production.

Third, the war has caused supply chain disruptions, including difficulties in domestic transportation and distribution, contributing to bottlenecks and additional price increases in some areas.

Fourth, in recent weeks, specific sectors have witnessed significant price increases — most notably vegetables, which rose sharply due to a temporary imbalance between supply and demand. This reflects the severe damage to agricultural land in the south, the fact that the actual harvest season will not begin for several months, and supply-demand disruption caused by population displacement. A similar dynamic was observed in the meat sector.

2- Ministry of Economy Measures: Ensuring Supply, Monitoring Prices, and Enforcing Laws

In response to these developments, the Ministry has adopted an approach based on three main priorities:

First, ensuring commodity availability. The Ministry's priority is to ensure the continued availability of essential goods in markets. While rising prices remain entirely undesirable, it is important to emphasise that failing to reflect increases in import costs would expose local markets to commodity shortages, greatly harming consumers.

In this context, the Ministry of Economy and Trade is working closely with importers and distributors to ensure necessary quantities are available. Specifically, priority is being given to importing essential goods, and specific measures are being taken in sectors experiencing shortages.

Coordination is also under way with the Ministry of Agriculture to accelerate vegetable imports and facilitate administrative and inspection procedures. A large consignment of meat has been facilitated with the aim of stabilising prices and ensuring availability.
Second, strengthening monitoring and coordination. The Ministry has enhanced its price monitoring tools and market dynamics understanding. A price monitoring dashboard has been launched based on three databases, enabling precise and real-time tracking of price developments. The Supreme Price Council has also been activated to monitor inflation in detail and coordinate with relevant parties to propose practical solutions — as was done in the vegetable and meat sectors, for example.
Third, combating unjustified price increases. While a significant portion of price rises is justified by increased import costs, the Ministry deals firmly with unjustified increases and exploitative practices.

In this context, the Ministry has intensified field monitoring operations across various vital sectors, particularly in areas experiencing increased pressure on essential goods and areas hosting displacement centres. From the start of the war on March 2 to March 27, the Consumer Protection Directorate carried out 1,797 field inspection visits, resulting in the filing of more than 75 violation reports, and referred 116 reports to the competent judiciary.

These operations included monitoring the gas importers sector, where one company was found to have hoarded ten tonnes of gas and refused to sell it to consumers; monitoring wholesale vegetable markets in coordination with the Ministry of Agriculture to control prices, with several violation reports filed — particularly regarding potato prices; monitoring diesel oil deliveries at importing companies to ensure there is no hoarding amid rising global crude oil prices, with a detailed report submitted on this matter; and tightening scrutiny of commodity prices and profit margins, especially for basic foodstuffs and goods related to displaced persons' needs, as well as monitoring petrol stations, the electricity generator sector, bakeries, mattress prices, and the safety, quality, and availability of food products at supermarkets, warehouses, and ready-made food outlets.

These steps complement the Consumer Protection Directorate's regular work. Since the beginning of the year, the Directorate has responded to 297 complaints, conducted 4,901 inspection visits, issued 5 suspension-of-trading decisions, filed 221 violation reports, and referred 414 reports to the competent judiciary.
It should be noted that monitoring procedures are carried out in coordination with the relevant security agencies and in constant communication with judicial authorities to reinforce stringent measures such as goods disposal, establishment closures with red wax seals, and the issuance of warnings in accordance with the law.

The Ministry reiterates its call to citizens to submit complaints through the Ministry's electronic application (MoET Digital Services), which is a key tool for rapid response.

3- In conclusion, although global inflationary pressures inevitably impact domestic prices, the Ministry is fully committed to:

• Ensuring commodity availability in markets
• Strengthening price monitoring
• Protecting consumers from illegal practices

The Ministry will continue to monitor developments and take the necessary measures to ensure market stability and protect citizens.