Lebanon raises fuel prices by 50-70%

Beirut (Al Ittihad, Agencies)

Yesterday, Lebanon raised fuel prices by 50 to 70 percent, gradually coming into the framework of raising fuel subsidies, while the dollar reserves in Bank to Liban fell, and the economy plummeted as the country went downhill.
As a result, Lebanon’s fuel prices, which have been in recession for two years, have risen almost threefold in two months, ranking the World Bank the worst in the world since 1850.
Lebanon has been experiencing a severe fuel crisis for months, worsening this month, with Bank to Liban announcing the opening of black market dollars of nearly 20,000 20,000 per dollar to buy credit for fuel, causing panic among the population who flocked to gas stations in fear of a sharp rise in prices.
The decision by Bank to Liban sparked widespread controversy among politicians. Yesterday, officials announced a solution to import fuel at a price of 8 8,000 per dollar until the end of September.
This is the second time officials have adjusted the price of fuel imports, and at the end of June they began to finance the import of fuel.
Based on the provisional solution, the Directorate General of Oil announced yesterday that the price of octane 98 petrol will be 77,500 to 133,200 pounds (67 per cent increase), and 95 octane petrol 79,700 to 129 thousand pounds (66 per cent).
Domestic gas bottle prices rose by 58,500 to 90,400 pounds (50 per cent) and diesel by 58,500 to 101,500 pounds (73 per cent).
Banquet du Lipon supports fuel imports through a mechanism that provides 85 percent of the total cost of imports, with importers paying the remaining amount according to the official exchange rate, the black market exchange rate.
Banquo du Liban has been demanding for months that the subsidy on basic commodities be forcibly reduced to dollars in reserve, which is a percentage of deposits made by private banks with the central bank.
The fuel crisis is reflected in a variety of sectors, including hospitals, bakeries, communications and food products. In recent months, the ability to deliver nutrients to all parts of Electricity to Liban has decreased, so the ration time has exceeded 22 hours a day.
Private generators can no longer save the fuel they need for power outages and are forced to raise rations and tariffs significantly as a result of buying diesel from the black market.
The United Nations says most Lebanese people earn their wages in local currency, which has lost more than 90 percent of its value against the dollar, while about 80 percent of the population lives below the poverty line.