Lebanon raises fuel prices a second time
16% increase brings the price of fuel, in short supply, closer to black market rates
Lebanon’s new government raised the price of fuel by 16 per cent yesterday, the second time in five days, part of a gradual lifting of subsidies in the crisis-struck country.
The new hike brings the price of fuel, in short supply, closer to black market rates
and comes after warnings from
Lebanon’s central bank that it can no longer continue to subsidize fuel purchases that have drained its foreign reserves.
Following the price hike, people will have to pay some ten times more for fuel compared to pre-crisis rates. A common unit of measurement — 20 litres — of 95-octane gasoline now costs 202,400 Lebanese pounds — about $14.45.
Currency woes
The Lebanese currency, pegged for 30 years to the dollar at 1,500 pounds for $1, has been hovering at around 10 times that rate in the black market. It traded at around 15,400 Lebanese pounds yesterday.
With prices rising so steeply, many pumps simply could not handle the new five-digit figures on their screens, and displayed ‘fail’ messages. Several stations shut down while seeking a solution to the dilemma.
Long queues outside fuel stations have often descended into violence and caused major traffic jams. Prices of diesel for local power generation have also increased more than tenfold. It is nearly impossible for many families to secure electricity. Many businesses have also shut down.