BEIRUT: Motorists queued for hours at gas stations across Lebanon on Tuesday as fears of an imminent end to the country’s subsidy on fuel increased demand for a commodity already in short supply.
Payment delays are also keeping urgent oil stocks on offshore tankers, meaning that many gas stations are facing critical supply shortages.
Queues extended into streets as drivers waited to fill their cars. Some stations rationed the amount of fuel sold to customers, mostly taxi drivers. Other stores closed down entirely.
However, Fadi Abu Shakra, representative of the union for fuel distributors and gas stations in Lebanon, said that the confusion and fear surrounding gas supply was “unjustified.”
Friday, 19 February, 2021 - 09:00
Lebanese pound notes change hands at a currency exchange in Beirut. (Reuters) Beirut - Inas Sherri
The value of the Lebanese currency against the US dollar dropped to an unprecedented level on the black market on Thursday, almost reaching LBP 10,000 to the dollar.
Economic expert Jean Tawileh said the sharp deterioration was the result of the increasing demand by importers for dollars from the black market over the past weeks, due to the failure of the Central Bank of Lebanon (BDL) to open credits for subsidized goods.
In remarks to Asharq Al-Awsat, Tawileh noted that the BDL’s reserves in foreign currencies were no longer sufficient to maintain subsidies.
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The value of the Lebanese currency against the US dollar dropped to an unprecedented level on the black market on Thursday, almost reaching LBP 10,000 to the dollar.
Economic expert Jean Tawileh said the sharp deterioration was the result of the increasing demand by importers for dollars from the black market over the past weeks, due to the failure of the Central Bank of Lebanon (BDL) to open credits for subsidized goods.
In remarks to Asharq Al-Awsat, Tawileh noted that the BDL’s reserves in foreign currencies were no longer sufficient to maintain subsidies.
Consequently, certain goods are no longer subsidized, but no official announcement was made in this regard, he said.
December 12, 2020 at 4:06 pm | Published in: Lebanon, Middle East, News
Security forces intervene in protesters with tear gas in Beirut, Lebanon on September 1, 2020 [Houssam Shbaro/Anadolu Agency] December 12, 2020 at 4:06 pm
Following the Central Bank of Lebanon s decision to start implementing subsidy cuts for basic goods including flour, fuel, and medicines, widespread protests have erupted across the country, news agencies reported.
Xinhua News Agency reported United Nations (UN) officials expressing their fear on Tuesday that the subsidy cuts would cause havoc in the country if no alternative plan, such as creating a safety net, is made before the removal of the subsidy.