Oil in Lebanon: sparring for margins

There are few sectors of the economy that elicit less sympathy than the oil industry. Thus one has to wonder whether there wasn’t more anger than pity generated last month toward oil-importing companies, truckers and gas stations after their one day strike left those who failed to fill up in time sucking on fumes. The oil industry was crying foul, however, over what it claims are profit margins that are plummeting due to government imposed surcharges and the minimum salary increase. The March 15 protest was the latest engagement of a long running battle with the Ministry of Energy and Water over price structuring.  To judge whether industry advocates have a case or not, one must understand the basic dynamics of the sector. Every Wednesday the government sets the price for a jerrycan (20 liters of fuel); it is a crucial revenue stream for the country, with tax of 5,500LL