Transport Fares Remain Fixed Despite Fuel Price Drop, Ministry Steps Observed

As fuel prices continue to fall in Lebanon, the issue of land transport fares has resurfaced, raising questions about whether the reduced costs of gasoline and diesel will lead to lower shared taxi and public transport fares, or if the rates will remain unchanged despite the decrease in a major operational expense.

This inquiry stems from market patterns observed in recent years, where any rise in fuel prices quickly translated into increased transport fares, either through official tariff adjustments or unilateral fare hikes by many drivers. Over time, taxi fares in many areas have ranged between 250,000 and 300,000 Lebanese pounds, with some drivers charging up to 400,000 pounds, while fares on several van routes have stabilized around 150,000 pounds.

However, the current situation appears different, as the decline in fuel prices has not yet resulted in any changes to transport fares. This has reignited debates about the criteria used to set fares and whether they are influenced solely by fuel costs or by a broader equation that includes various operational expenses.

In this regard, Bassam Tleis, head of the federations and unions of the land transport sector in Lebanon, told Nidaa Al-Watan that “service fares will remain unchanged for the time being, despite the recent drop in gasoline and diesel prices.” He clarified that “the decision to adjust fares is not linked exclusively to fuel prices.”

Tleis explained that “fare determination relies on approximately 17 factors contributing to operational costs, with fuel prices being just one element alongside maintenance costs, spare parts, oils, tires, and other expenses borne by drivers. Therefore, a decrease in fuel prices does not automatically lead to a fare reduction.”

He also revealed that “the federations and unions of the land transport sector are prepared to respond to any invitation for a meeting with the Minister of Public Works and Transport and the Land Transport Directorate to discuss the sector’s situation and whether there is a need to reassess fares in light of recent developments.”

Tleis emphasized that “the currently approved official fare is 250,000 Lebanese pounds,” noting that “any amount exceeding this fare is not based on an official decision.” He added that “citizens have the right to refuse to pay fares ranging between 300,000 and 400,000 pounds and to choose another taxi that adheres to the official tariff.”

From an economic perspective, the drop in fuel prices alone is not a sufficient indicator to reduce transport fares, as fuel constitutes only a part of the operational costs. Prices for spare parts, tires, oils, maintenance work, insurance, and operating fees remain high, limiting the impact of lower fuel prices on the total costs drivers face.

Conversely, many argue that a fair mechanism for setting transport fares should be based on a clear formula linking fares to operational cost variables, both when they rise and fall. If increases in fuel prices justify fare adjustments, it is also logical that decreases should be reflected when other cost elements permit, thereby balancing drivers’ rights with citizens’ ability to afford transport and reinforcing trust in the official pricing mechanism.

Nonetheless, the field reality reveals ongoing disorder in the transport sector, with fares varying between regions and even between drivers on the same route, amid weak oversight and the absence of an effective mechanism to ensure universal adherence to official tariffs. As a result, citizens face inconsistent pricing, while complaints persist regarding the lack of proper regulation of this vital sector.

Between citizens demanding that fuel price reductions be reflected in transport fares and drivers maintaining that fuel is only one component of operational costs, there is an urgent need to establish a transparent mechanism for periodically reviewing transport fares based on clear economic indicators. Such a system would balance drivers’ rights with citizens’ capacity to bear transport costs and curb the pricing chaos that currently affects the sector.