Lebanon's 222,000 Palestinian refugees face steep rise in energy costs

Osama Najjar closed his aluminum shop in the Beddawi refugee camp in Tripoli in early 2024.

The Palestinian refugee could no longer pay his bills amid rising electricity rates and general inflation. Since then, he has struggled to find new work. He describes the current state of the camps as tragic, pointing to high prices and utility bills as the primary pressures on residents.

Najjar’s experience reflects a wider structural exclusion in Lebanon. Palestinians are barred from practicing medicine, law, engineering, and pharmacy. This restriction forces many to rely on small businesses regardless of their formal education. Although a 2010 amendment reduced permit fees and a 2021 decree eased some professional restrictions, experts say implementation remains limited. A February 2026 administrative mechanism now allows Palestinian nursing students to apply for employment sponsorship, but many argue these changes do not fix the core labor barriers.

The economic strain is compounded by the country's banking crisis and energy shortages. The Lebanese state provides only a few hours of public electricity daily, forcing residents to buy power from private generators. The World Bank predicts inflation in Lebanon could reach 17.5 percent in 2026. This burden falls heavily on the 222,000 Palestinians recognized by the United Nations Relief and Works Agency for Palestine in Lebanon as of February 2025.

Aid from UNRWA has become less reliable. Several countries cut funding to the agency in 2024 after Israel alleged its staff participated in the October 7, 2023 attacks. UNRWA denied the claims, and many states have since reinstated support. Nevertheless, UN Secretary-General Antonio Guterres warned of a funding shortfall of about $100 million in July. In September, the agency reported a projected financial deficit of at least $200 million between the end of 2026 and the start of 2027.

Elia Ayoub, a UK-based researcher, notes that Palestinians can study for top professions but cannot work in them. They also cannot own land or hold seats in parliament. He states that Lebanon’s ethno-sectarian system does not recognize Palestinians as one of its groups.

With domestic options shrinking, more Palestinians are attempting to reach Europe by sea. The number of vessels leaving Lebanon doubled between 2020 and 2021. That figure rose by 121 percent the following year, according to the Friedrich Naumann Foundation. At least 86 people died in 2022 when a boat sank off the coast of Syria. Najjar says the camps are full of talk about boarding boats to Turkey and then Greece.

The European Union approved a support mission to Lebanon in late October to help strengthen security forces and maritime governance. Najjar says the poor condition of Palestinians in Lebanon remains the central driver of these departures.