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For a considerable period of time, the Lebanese people have been gripped by rumors of shortages affecting various products. The ongoing war between Hamas and Israel, as well as apprehensions about Lebanon’s involvement, have renewed concerns about potential shortages of flour, fuel, bread, medicines, and food. However, importers and unions are attempting to ease these concerns, stressing that there is no cause for panic.
There is no need to worry at this time. There is no immediate threat of shortages, despite the conflict between Hamas and Israel and the ongoing tensions in southern Lebanon. Importers and unions assert that stocks are sufficient to meet basic needs and that they are prepared to provide swift solutions should the situation evolve.
As per Antoine Seif, the president of the Union of Bakery Owners in Mount Lebanon, the present wheat supply is sufficient for a period of approximately two months. He further assures This is Beirut that ships carrying this vital cereal arrive regularly, eliminating concerns in this regard unless a naval blockade is imposed.
Nonetheless, Seif emphasizes the significance of proactive measures, highlighting the necessity for the construction of silos in diverse areas of Beirut, as well as in the northern and southern regions of Lebanon, to guarantee reserves for a minimum of 5 to 6 months. He recalls the private sector readiness to actively participate in this construction project through the establishment of a public-private partnership (PPP) in case the Lebanese government encounters limitations in this regard.
Lebanon and the World Bank signed an emergency agreement in May 2022, worth $150 million, aimed at preserving food security in Lebanon by enhancing wheat imports.
This positive outlook also applies to food products. President of the Union of Food Importers, Hani Bohsali, also reassured This is Beirut that “currently, no problem is impacting the supply of food products, whether it’s related to incoming goods or the available stock in Lebanon.” He stressed that “there is an abundance of various goods for the next two to three months.” For now, he assumes that there is no need for additional measures and indicates that “despite the instability and pressures prevailing in Lebanon, the uninterrupted flow of goods continues at both the Port of Beirut and Beirut International Airport.”
Furthermore, he emphasized that food prices have remained unaffected and stable despite the events in Gaza.
Towards an Upcoming Fuel Price Increase
The situation takes a different turn when it comes to fuel. Maroun Chammas, president of the Association of Oil Importing Companies, has expressed concern regarding the ongoing shipments of oil tankers to Lebanon. He disclosed that certain importers have issued warnings regarding the possibility of discontinuing their services to Lebanon, whereas others made insurance policies to cover the potential hazards of war and increasing transportation expenses. “This will undoubtedly result in an increase of approximately $40 per ton, a significant amount,” Chammas told This is Beirut.
Practically, this would mean a 60-cent increase for every 20 liters of fuel and a 70-cent increase for diesel. Chammas clarified that insurance expenses may fluctuate in accordance with the development of the conflict, thereby affecting prices. He also stressed the importance of maintaining a steady supply, but he resisted commenting on available stock levels in Lebanon. He simply stated that before the 2019 crisis, Lebanon had reserves for a period of forty days. However, due to payment constraints, the stocks have been reduced to a maximum of fifteen days, provided that the supply remains uninterrupted and that citizens refrain from rushing to gas stations to hoard fuel and diesel.
Hassan Jaafar, the Secretary of the Union of Gas Station Owners in Lebanon, offered a reassuring perspective on Monday, affirming that “there is no looming fuel crisis.” He said sufficient stocks are available for at least twenty days.
When it comes to pharmaceuticals, Joseph Ghorayeb, president of the Importers’ Union for Pharmaceuticals, also provided comforting reassurance. “There are stocks of medications, including those for chronic illnesses, which can last for two to four months, depending on the specific medications involved,” he asserted in an interview with This is Beirut. He further revealed that ongoing discussions with suppliers are underway to increase the frequency of deliveries as an added precautionary measure.
