Lebanese Energy Minister Calls for Electricity Tariff Adjustment Amid Fuel Cost Rise

The Ministry of Energy and Water issued a statement outlining recent developments regarding electricity production costs in Lebanon.

Energy and Water Minister Joe Al-Sadi informed the Cabinet about the current expenses related to energy production, emphasizing the significant increase in fuel prices caused by the ongoing regional conflict. He also highlighted the decline in revenue collection in certain areas, which results in financial losses for the Lebanese Electricity Company, similar to previous periods, unless the current kilowatt-hour tariff is reconsidered.

The minister recalled that since assuming his duties, the electricity company has been purchasing fuel from collected revenues, as he opposed reverting to previous methods involving borrowing from the treasury, which would burden citizens financially.

He pointed out that the practical and logical solution in this situation is to adjust the kilowatt-hour price dynamically in line with global oil price fluctuations. This approach has consistently been recommended in studies conducted jointly by the Ministry of Energy, the Electricity Company, and the World Bank.

However, the government rejected revising the tariff and the kilowatt-hour price due to the difficult living conditions faced by Lebanese citizens. Therefore, Al-Sadi renewed his call for the Cabinet to instruct all ministries, administrations, and public institutions to settle their outstanding payments owed to the Lebanese Electricity Company for their subscriptions and electricity consumption, which exceed $268 million, averaging $50 million monthly. Such a measure would provide the necessary funds to purchase fuel for the company until the autumn season, by which time the global oil market situation would be clearer.

Prime Minister Nawaf Salam responded positively to Al-Sadi’s proposal and issued a directive to ministries and public institutions to pay their due amounts. Concurrently, he requested the Ministry of Finance to take the necessary facilitative steps to ensure these payments are made.

This statement refutes false claims made by the newspaper "Al-Akhbar" in its June 26, 2026 article titled "Energy Minister Blames Cabinet for Power Outages," which selectively quoted and distorted the Cabinet discussions and omitted the solution proposed by Al-Sadi and the commitment obtained from the Cabinet.

Minister Al-Sadi has never shirked his responsibilities nor treated the Cabinet as a mere mailbox. However, as a statesman, he is obliged to present issues to the Cabinet table. It is regrettable that some newspapers willingly turn their pages into platforms for misinformation and distortion of facts for political, financial, and marketing purposes.