Lebanon raises fuel prices by more than 35% in crisis | World

Driver Kasem Soleimani of the Iranian Revolutionary Guard Corps, killed in a U.S. drone strike in Iraq in early January 2020, gets fuel at a gas station under a sign along an airport highway in the southern suburbs Waiting in a long line. Lebanon, Beirut, Sunday, June 27, 2021. On Friday, Lebanon’s caretaker Prime Minister Hassan Diab approved allowing fuel imports to be funded at a rate higher than the official exchange rate, effectively reducing significant fuel subsidies to date. .. It has been in place for decades as gasoline shortages worsen.

Hassan Anma

BASSEMMROUEAP communication

Beirut (AP) — Tuesday’s Lebanese Department of Energy raised gasoline and fuel prices by 35%. This can lead to sharp rises in the prices of most commodities in crisis-stricken countries.

The hike took place a few days after the caretaker’s prime minister, Hassan Diab, approved a loan to fuel imports at a rate higher than the official exchange rate and effectively reduced significant fuel subsidies.

Lebanon is experiencing an unprecedented economic and financial collapse, coupled with months of political impasse over the formation of a new government.

This development poses the greatest threat to the stability of small countries since the end of the civil war 30 years ago. The World Bank said the crisis was one of the worst the world has seen in 150 years.

Boxing and shooting broke out at several gas stations over the past few weeks as frustrated citizens lined up for hours to fill their tanks and shortages led to protests around Lebanon.

Power cuts lasted most of the day, and people had to shut down their own generators for hours to distribute fuel. Last week, the Ministry of Economy raised the price of subsidized bread by 18%. This is the fifth increase in a year.

The price of gasoline, which is calculated to be 20 liters (about 5 1/2 gallons) in Lebanon, reached 62,000 Lebanese pounds, up 35%, to about $ 3.6 at black market rates. Despite the hike, the driver lined up at the gas station on Tuesday to fill the tank. Diesel increased 38% to £ 46,100 and was about $ 2.7 in the black market.

Lebanon raises fuel prices by more than 35% in crisis | World

Source link Lebanon raises fuel prices by more than 35% in crisis | World

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