Subsidies offered by the government to support energy costs made up around 8.4 percent of GDP in 2011, the highest rate among 17 countries in the MENA region, according to a recent report by the International Monetary Fund (IMF).

Electricity subsidies dominated energy subsidies, totaling 4.6 percent of GDP. Fuel subsidies stood at 3.5 percent of GDP. The remaining subsidies were for natural gas and coal. Measured as a share of total government spending, subsidies of petroleum products made up around 15 percent, while subsidies on electricity represented 19.5 percent.  Transfers to the Electricité du Liban (EDL) for energy production totaled $1.54 billion in 2011 and grew by 30 percent in the following year.

The IMF urged policymakers worldwide to reform subsidies schemes. The IMF said the lack of information regarding the subsidies, opposition from specific groups benefiting from these subsidies, and lack of government credibility and capacity have been blocking reforms.

The report calculated subsidies post-tax, which includes the value of subsidies after applying the relevant taxes and the amount of the tax subsidies. Spending on pre-tax subsidies on electricity and fuel was 4.5 percent of GDP in 2011, more than twice as much as spending on education (two percent of GDP).