Fuel prices in Lebanon rose by up to 70%

Fuel prices in Lebanon rose by up to 70% on Sunday after a further reduction in subsidies for their import. This will further increase the pressure on households in a country struggling with serious problems. The cost of hydrocarbon fuels in Lebanon has roughly tripled in two months since the central bank began reducing its support for imports. The latest reduction in incentives, which will lead to higher prices for other key commodities, comes at a time when the Mediterranean country is in one of the worst economic crises in the world since 1850. During almost continuous power outages, Lebanese have difficulty obtaining enough fuel to travel to work or to power backup generators. Motorists stand in long lines in front of those gas stations that have remained open so far. Somewhere, the military is also assisting in the distribution of fuel, especially after the quarrel over scarce fuel broke out and at least three people died. A fuel tank blast in the north of the country killed at least 30 people last weekend. The cost of 98- and 95-octane gasoline increased by 67% and 66%, respectively, from August 11 to Sunday, according to prices published by the National Press Agency. The cost of fuel oil increased by 73% over the same period and the price of a gas bomb for cooking increased by more than 50%. All three types of fuel cost about three times more than on June 23. This increase is taking place at a time when more than three quarters of the population live in poverty. Most people in Lebanon earn wages in local currency, the pound, which has lost more than 90% of its value on the black market since 2019 against the US dollar. The central bank on Saturday agreed to support fuel imports at an exchange rate of 8,000 Lebanese pound against the dollar. By comparison, in June, when it began to reduce these subsidies, it was 3,900 Lebanese pound per dollar. The Lebanese bank previously provided foreign currency to importers at an official exchange rate of around 1,500 Lebanese pound per dollar. Earlier this month, however, she said she could no longer afford to provide importers with dollars at any preferential rate. However, political leaders reached a compromise on Saturday at a rate of 8,000 Lebanese pound per dollar.