Lebanon Approves Fuel Imports At Higher Exchange Rates Due To Crisis

CAIRO (UrduPoint News / Sputnik - 25th June, 2021) Lebanese Prime Minister Hassan Diab approved the import of gasoline into the country at a new exchange rate of 3,900 Lebanese Pounds per dollar, almost three times higher than the current 1,500, his press service reported on Friday.

Lebanon has been struggling with fuel shortages for several months in a row, as the ongoing economic crisis deprives the state and private companies of funds to purchase enough fuel to cover demand in the country, where gasoline prices are subsidized by the state.

"Premier Hassan Diab today granted his exceptional approval to the proposal of His Excellency the Minister of Finance to allow the financing of fuel import on the basis of the / 3900 / LBP exchange rate price instead of /1500/ LBP as per Article 91 of the Monetary and Credit Law," the press service was quoted as saying by the state NNA news agency.

The NNA noted that the government made the decision with the expectation the US Dollar flow to Lebanon will increase in the following months "with the arrival of expatriates and tourists."

Lebanese gas stations work only until noon and fill up no more than 25 liters per car due to gasoline shortages, which also result in long traffic jams in front of stations.

The fuel and financial crisis has also hit the public energy system in the country. Due to the lack of funds to purchase diesel fuel for power plants, the power supply company was forced to shut down several stations, reducing energy production to a minimum and limiting electricity supply to citizens to 2-4 hours a day.