“What is the cost of driving a car one kilometer?” This question was posed by Information International to its co-founder Jawad Adra, who provided a detailed answer. According to Information International, the cost per kilometer is 11,900 Lebanese pounds (LBP). Consequently, the costs for round trips are as follows:
- Tripoli to Beirut: LBP1,907,000.
- Beirut to Jounieh:LBP 595,000.
- Beirut to Sidon: LBP1,070,000.
- Beirut to Zahle: LBP1,260,000.
- Beirut to Baalbek: LBP1,907,000.
- Beirut to Halba (Akkar): LBP2,145,400.
- Beirut to Bint Jbeil: LBP2,900,000.
- Beirut to Naqoura: LBP2,358,000.
- Within Beirut areas: LBP258,000.
It is noted that the daily transport allowance set for public sector employees (soon to be applied to private sector workers) is 450,000 Lebanese pounds, covering the expense of a 38-kilometer round trip.
Not included in this cost calculation are expenses related to accidents, sudden breakdowns, and parking fees.
Accounting for the annual cost of sudden vehicle breakdowns at $150, translating to an average of LBP1,119 per kilometer, and add it to the above-mentioned costs, the total cost rises to LBP13,020 per kilometer.
Continuing Rise in Oil Prices.
Brent crude futures saw a weekly increase of 2.4% over the previous week , reaching around $83.55 per barrel. Similarly, futures for West Texas Intermediate crude in the United States experienced a 4.5% increase, amounting to approximately $79.97 per barrel.
These trends emerge as markets anticipate the “OPEC+” alliance’s decisions regarding crude oil production levels for the second quarter of this year , with expected production cuts until late June. The decisions are expected to be officially announced next week, becoming effective from the start of April. Should the alliance countries opt to maintain the current policy of production cuts, it is likely to significantly boost oil prices, prompting speculators to increase crude oil demand in anticipation of the alliance’s decisions.
Coinciding with these developments, official statistics revealed a fifth consecutive month of declining industrial activity in China this February. Typically, such figures suggest a decrease in China’s demand for crude oil, potentially leading to a drop in oil prices. However, in stark contrast, oil prices experienced notable gains on Friday, driven by the very factors that countered the expected trend, specifically market expectations surrounding “OPEC+” decisions and ongoing disruptions in the Red Sea region.
How Does This Affect Gasoline Prices in Lebanon?
As global oil prices climb, gasoline prices in Lebanon have seen a notable rise. The increase for both types of petrol amounted to LBP16,000, while diesel prices saw a minor reduction of LBP4,000, and gas prices remained unchanged.
According to the fuel pricing schedule released on March 1st, the cost of a can of 95-octane gasoline stood at LBP1,657,000, 98-octane gasoline at LBP1,695,000, diesel at LBP1,609,000, and gas at LBP944,000.
Jawad Adra, Zeina Akar Adra, and their partners established Information International, an independent firm specializing in scientific research, studies, and statistics, founded in Beirut in 1995. Information International disseminates research and surveys on a wide range of topics—economic, financial, social, and cultural—relevant to both the public and policymakers, along with conducting periodic public opinion polls on various issues.
Besides leading Information International, Jawad Adra also established the Nabu Museum in Northern Lebanon. Nabu offers a venue for showcasing artistic works and acts as an institution dedicated to preserving the cultural connections of communities through its educational programs, training sessions, organized tours, public lectures, and informative exhibitions.
Summary:
“What is the cost of driving one kilometer by car?” This question, asked by Information International to its proprietor, Jawad Adra, was thoroughly answered.
