The Lebanese government said on Sunday (August 22nd) that it has raised the official price of 95-octane gasoline by 66%, in partial reduction of fuel subsidies to ease the severe shortage that is crippling the country.
The government statement said the price change is effective immediately.
The Lebanese Ministry of Energy and Water stated that the price of fuel per liter, i.e. 20 liters , has increased as follows:
- Octane 98 gasoline: from 79,700 pounds to 133,200 pounds
- Octane 95 gasoline: from 77,500 pounds to 129,000 pounds
- Diesel Oil: from 58,500 SYP to 101,500 SYP
It was expected that fuel prices in Lebanon would double, after the government decided on Saturday, August 21st, to raise the exchange rate used in pricing petroleum products in an effort to ease the acute shortage of fuel, which paralyzed the country.
The hike, which amounts to a partial reduction in fuel subsidies, means more hardship in a country where poverty has risen sharply following a two-year financial meltdown that wiped out 90% of the local currency's value.
Lebanese President Michel Aoun said Saturday, August 21, that the state treasury will bear the cost of continuing fuel subsidies, after the Central Bank of Lebanon announced earlier the same day that the government decided to increase the exchange rate for fuel pricing to be eight thousand pounds to the dollar from the previous price, which was 3900 in A decision that will inevitably lead to higher fuel prices.
Senior Lebanese officials said Saturday, August 21, that the Central Bank of Lebanon decided to open a temporary account to "cover urgent and exceptional support" for fuel imports with a maximum of $225 million until the end of September in an attempt to ease the fuel crisis.