Lebanon: the price of gasoline increases by 38%

Hezbollah flags fly on a closed gas station near the Lebanese-Syrian border in the village of al-Ain, Lebanon, September 16, 2021. REUTERS - AZIZ TAHER

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The Lebanese Ministry of Energy announced on Friday a 38% increase in the price of gasoline, the third since the start of the summer.

Despite this increase, this fuel remained almost impossible to find and most gas stations remained closed on Friday.

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With our correspondent in Beirut, 

Paul Khalifeh

In Lebanon, the price of a 20-liter can of gasoline is now worth a quarter of the minimum wage.

It is around $ 45, after losing ten times its value due to the collapse of the pound against the greenback. 

The 38% increase announced on Friday is due to a partial lifting by the Banque du Liban of

fuel subsidies

, the third since the start of the summer.

The Central Bank subsidizes certain products by supplying importers with dollars at the official rate of 1,500 pounds, while on the black market the greenback is worth ten times as much.

But the reserves of the Banque du Liban are almost exhausted and the subsidies are trickling down.

Severe shortages

An undersupplied market, storage by unscrupulous traders and smuggling to neighboring Syria are causing severe

fuel shortages

.

The same phenomenon is observed in the market for drugs and other foodstuffs which are theoretically subsidized, but which are not imported in sufficient quantities.

The total lifting of subsidies is only a matter of days.

The 20 liters of gasoline will then sell for 350,000 pounds, or 50% of the minimum wage.

The prices of most products and foodstuffs, already multiplied by ten, will increase further, almost nullifying the purchasing power of a large majority of Lebanese.

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  • Lebanon

  • Oil

  • consumption

  • Energies