Lebanon raises fuel prices by more than a third in bid to ease shortages

A demonstrator burns tires during a protest against mounting economic hardships, in Beirut, Lebanon June 28, 2021. Picture taken June 28, 2021.© REUTERS/Mohamed Azakir

Lebanon’s government raised fuel prices by more than a third on Tuesday, a move aimed at alleviating crippling shortages but which will mount pressure on impoverished consumers.

The government last week effectively cut fuel subsidies as Lebanon grapples with a catastrophic economic collapse that has sunk its currency by more than 90% in less than two years.

The energy ministry said the average price of 20 litres of 95-octane gasoline was increased by 35% to 61,100 pounds. That is the equivalent of $40 at Lebanon’s official exchange rate but less than $4 at Tuesday’s parallel market exchange rate. Diesel was increased by 12,800 pounds, or 38%, to 46,100 pounds.

Scuffles have become commonplace as motorists queue for hours to part-fill their tanks amid expectations of new deliveries. A knife was drawn during a fight at one petrol station, a Reuters witness said.

The spokesman for fuel distributors said six ships had started unloading cargos overnight, the National News Agency reported.

“What breaks my heart the most is the old people, people older than my dad, sitting at gas stations – the ones with blood pressure, diabetes and the ones who will collapse for God knows what reason – and nobody is providing for them,” said a man waiting his line who gave his name as Nour.

Protesters blocked roads with burning garbage and tyres in Beirut on Monday. President Michel Aoun said the new prices should ease the crisis.

The central bank said on Monday it would start giving credit lines to import fuel at 3,900 pounds to the dollar, weaker than the official exchange rate of 1,500 pounds that was being applied under the subsidy programme.

Dollars were changing hands at about 16,700 pounds on Tuesday on the parallel market, a dealer said. 




2 responses to “Lebanon raises fuel prices by more than a third in bid to ease shortages”

  1. A new record of misery for the Lebanese army: sells flights in the Lebanese skies as a supplement to income
    If you fancy a 15-minute flight in a Raven helicopter in the skies of Lebanon, prepare $ 150 in cash and take two friends with you (included in the price) to one of the relevant Lebanese army bases. The first flights depart on 1.7 as part of the Lebanese army’s attempt to improve cash flow under the pretext of “promoting tourism in Lebanon” https://t.me/abualiexpress/29552

  2. Fuel sold in Lebanon has risen in price in the last two days by a total of 50% in two beats.
    An initial increase of about 30% due to the cessation of government subsidies and a further increase of about 15% due to a change in the calculation basis of the official exchange rate of the Lebanese pound against the dollar.
    Updated price: 70,000 pounds (about four dollars) for 20 liters of 95-octane fuel https://t.me/abualiexpress/29575

    This may sound a little off in Israeli terms but it is 50% more than what they paid for fuel yesterday

Leave a Reply

Your email address will not be published. Required fields are marked *