2024-01-06 05:33:05
“Lebanon Debate”
Twice in less than a week, there was a rise, albeit a slight one, in fuel prices, without stopping at this detail, even though it constitutes the beginning of a path of rising prices globally, and this must be directly reflected in all prices in Lebanon, not just prices. Gasoline, fuel or gas. Is the concern justified, and will Lebanon be facing a price crisis that will begin with the rise in fuel prices as a result of the disruption of commercial activity in Bab al-Mandab, the tension in the Red Sea, and the rise in prices starting last Monday?
However, until now, energy affairs expert, lawyer Christina Abi Haidar, does not notice any direct and dramatic impact of the tensions in the Red Sea on oil supplies and prices globally in terms of rising prices, noting that this matter is due to the continued arrival of oil ships to all destinations, but by adopting New sea lines and routes, which will result in an increase in the cost and duration of shipping.
The expert and lawyer, Abi Haidar, said in an interview with “Lebanon Debate” that it is not possible to ignore the events and conflicts that are still ongoing and have a certain impact on the oil sector and prices, starting from the war in Ukraine, all the way to the war in Gaza, and passing through the tensions in the Red Sea. This makes the region’s geopolitical situation unstable, and therefore, if these tensions persist, the impact will be direct on oil prices and will lead to a significant rise in them.
Hence, the rise in prices is still limited, adds lawyer Abi Haidar, expecting a dramatic rise in oil prices as the conflicts continue, with this being quickly and directly reflected in all commodity prices, as it is a vital and influential factor in the markets, and then Lebanon will be, in… Very soon, it is at the forefront of the countries that will face challenges in terms of the expected high prices and the increasing cost of fuel prices.
Accordingly, Abi Haidar believes that political and military developments in the region in general, and in the Red Sea in particular, must be monitored and followed in order to anticipate the direction that things will take, and thus the direct and rapid repercussions on the economic reality in Lebanon and prices.
Regarding the reasons for Lebanon being quickly affected by the rise in prices, Abi Haidar attributes it to Lebanon’s weak ability to store large quantities of fuel, and the lack of oil refineries, in addition to the reality of economic collapse. Therefore, any rise in the prices of oil and various commodities globally, we will quickly notice in Lebanon from During the rise in prices of basic commodities such as gasoline, diesel fuel, gas, bread, and raw materials in all industries.
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