Fuel Prices Increased this Morning for a Second Time in 48 Hours

  • Economics
Fuel Prices Increased this Morning for a Second Time in 48 Hours

For the second time in 48 hours, fuel prices have increased in Lebanon, in a country mired in a severe economic crisis accompanied by hyperinflation that has pushed nearly 80% of the population below the poverty line.


Here’s what we know:


• According to the new official prices published by the Ministry of Energy, the price of 20 liters of 95-octane gasoline has increased by 2,300 LL , from 308,500  LL to 310,800 LL. The same amount of 98 octane gasoline, a product almost impossible to find on the Lebanese market, is set at 319,600 LL, up from 317,600 LL, an increase of 2,000  LL. The price of diesel has increased by 18,400 LL and is now set at 311,000  LL. A cooking gas cylinder will be sold at 266,000  LL, an increase of 14,900  LL.


• On Thursday, Lebanese Energy Minister Walid dayad tried to reassure the Lebanese that there was "no shortage of gasoline" in the country, amid fears of a return to the scenes of gas station lines experienced in recent months.


• The public's nervousness about fuel supplies, which has caused some congestion at gas pumps in the country, follows a decision by the central bank that asked station owners to provide 10 percent of the dollars required for the import bill, buying them on the parallel market, where the dollar has been trading above 22,000 LL, while the central bank will be responsible for providing the remaining go percent at a rate currently set at 19,000 LL. This change in mechanism comes a few weeks after Banque du Liban completely removed, without clearly announcing it, subsidies on some fuel imports, put in place in October 2019 at the beginning of the economic and financial crisis. Since then, while BDL until Tuesday had still provided 100 percent of the dollars required by importers of gasoline, importers of gas and diesel have had to turn to the parallel market.

• The value of the Lebanese pound on the parallel market recorded on Friday morning a new strong depreciation, the national currency trading at about LBP 22,700 against the dollar, according to the electronic platform lirarate.org, while the official rate remains fixed at LBP 1,507.5.




Source: L'Orient Today