September 30, 2022

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In Lebanon, deficit and fuel prices rise by 30% on the way to becoming a failed state

In Lebanon’s slump, fuel prices rose more than 30% on Tuesday, with subsidies partially removed and weeks of shortages causing endless queues at gas stations.

This increase will have an impact on other sectors and fuel inflation, especially public transport, distribution of goods, the price of bread or the bill for private electricity generators. Some suppliers have already announced price increases.

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Motorcyclists line up at a gas station in Beirut, Lebanon on June 21, 2021

This is another blow to the Lebanese, who have been angered by incompetent and corrupt political leaders. According to the World Bank, the country has been mired in the worst economic crisis in the world since 1850 and more than half of the population already lives below the poverty line, according to the UN.

Until now, the central bank has provided fuel importers with 85% of the $ 85 million they need for their operations at the official rate of 1,507 Lebanese dollars, which is more favorable than the black pack the green bag is now trading on. 17,000 books.

The system of subsidies made it possible to control pump prices and mitigate the effects of the cash crunch.

But as Lebanese bank reserves fall, the latter will now exchange dollars with importers against எதிராக 3,900.

As a result, the price of the Unleaded 95 can rose nearly 16,000 Lebanese pounds (9 euros at the official rate) on Tuesday, reaching 61,000 pounds (35 euros), according to the National News Agency (ANI).

The 20-liter price of the Unleashed 98 has risen by nearly, 16,300 to 63 63,000, while the price of a bottle of diesel has risen from 33 33,300 to 46 46,100.

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“We hate life”

As fuel shortages have paralyzed the country for weeks, prices have risen, with motorists parked in front of stations for several hours each day, often at dawn.

“We hate life here, we can’t take this anymore,” Nourdin Radwan led a long line in Beirut on Tuesday.

“Standing in line every day, no more disgraceful than that. Let’s kill each other for petrol soon,” he said.

According to importers, Lebanese officials say the delay in opening the central bank’s new taxes is due to large stocks of fuel being stored by traders waiting for new tariffs and smuggled into Syria.

Fodi Apo Chakra, president of the Fuel Distributors Association, told ANI on Tuesday that six tankers had begun unloading their cargo.

“Crisis Relief”

“What has happened in recent days in front of gas stations is unacceptable, it is a disgrace to the citizens,” President Michael Awn pointed out on Tuesday, one of the political figures shouting in the street.

During a security meeting he chaired, he described the new price list as “mitigating the crisis”.

Over the weekend, angry protesters in two major cities tried to attack public institutions, including branches of Bank to Liban, to condemn the depreciation of the national currency.

On Monday, protesters blocked several roads across the country. Lebanon was rocked in the fall of 2019 by an unprecedented popular uprising that condemned a corrupt political class that had remained unchanged for nearly a decade.

August 4 marks the first anniversary of the eruption of the port of Beirut. This tragedy prompted the resignation of the current government responsible for current affairs.

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Since then, Lebanon and the international community have been waiting to form a new government.