Lebanon: Fuel Prices to Soar Due to Short-term Deal on Fuel Subsidies

Published August 22nd, 2021 - 08:30 GMT
Lebanon: Fuel Prices to Soar Due to Short-term Deal on Fuel Subsidies
Based on this decision, the official selling prices will now be based on an exchange rate of 8,000 pounds to the dollar, up from 3,900, but still below an unofficial parallel market rate closer to 20,000 pounds. (Shutterstock)

Fuel prices in Lebanon are projected to soar after the country’s leaders agreed to a short-term compromise to maintain fuel subsidies, the presidency and prime minister's office said Saturday.

On Saturday evening, the presidency announced approval of a "request for the Bank of Lebanon to open a temporary account to cover urgent and exceptional subsidies for fuel." 

Up to $225 million would be set aside to subsidize imports of gas, fuel oil and cooking gas until the end of September, it said. 

The decision was made at an emergency meeting attended by the president, the central bank chief and the caretaker prime minister, as well as the outgoing ministers of finance and energy. 

Lebanese President Michel Aoun confirmed the treasury would bear the cost of the continued subsidy.

Based on this decision, the official selling prices will now be based on an exchange rate of 8,000 pounds to the dollar, up from 3,900, but still below an unofficial parallel market rate closer to 20,000 pounds.

Responding to concerns about the effect of the price rise, the government announced that it will pay emergency social assistance to people on the public payroll equal to one month’s pay or pension.


© 2000 - 2021 Al Bawaba (www.albawaba.com)

You may also like

Subscribe

Sign up to our newsletter for exclusive updates and enhanced content