BEIRUT (Reuters) — The Lebanese government said on Sunday
that it was raising gasoline prices by 66 percent in a partial reduction of
fuel subsidies as it seeks to ease crippling shortages that have brought the
country to a standstill.
اضافة اعلان
The increase in 95-octane gasoline prices would take effect
immediately, the government said in a statement. It follows the state's
decision on Saturday to change the exchange rate used to price petroleum
products in a bid to ease the shortages.
The
fuel crisis worsened this month when the central bank
said it could no longer finance fuel imports at heavily subsidized exchange
rates and would switch to market rates.
The government, concerned about the impact of price rises,
in a compromise agreed with the central bank on Saturday to raise prices, but
by less than the market rate, to allow subsidized imports to resume for now.
The rise in prices will mean more hardship in a country
where poverty levels have soared during a two-year-long financial meltdown that
has wiped more than 90 percent off the value of the Lebanese pound.
The decision was made at an emergency meeting on Saturday
attended by the president, central bank governor and other officials over a
fuel crisis that has left Lebanon in
chaos, paralyzing basic services and
sparking daily melees as people scramble for fuel.
The price increase does not fully lift the exchange rate for
pricing fuel to the exchange rate at which the central bank will finance its
import — a gap which the state will continue to finance, for now.
The government said the central bank will open an account
for that purpose up to a maximum of $225 million until the end of September —
funds the government will have to pay back in the 2022 budget.
Hezbollah has arranged for a shipment of fuel from Iran to
help ease the fuel shortage in Lebanon.
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