| 5 March 2024, Tuesday |

Lifting subsidies in Lebanon is a random step, lacking any serious plan

Lifting subsidies on commodities in Lebanon is random and lacks any efficient plan, this is what’s actually happening, according to Sawt Beirut International (SBI) information.

Lifting subsidies in Egypt was accompanied by a plan set by the government in partnership with the World Bank. This plan has helped Egypt surpass all the challenges and difficulties with minimal losses. However, in Lebanon, there is absence for a serious plan to lift subsidies, nor Information about expected meetings between stakeholders to negotiate this file.

SBI information revealed that the gasoline stock has reached below the red line and the quantities available in the market are sufficient for three days until next Tuesday at the latest.

Sources told SBI that the Central Bank didn’t approve any credit lines for the import of new oil vessels. There are two vessels off the Lebanese coast that contain very small quantities of gasoline.

The main hurdle that would face lifting subsidies is in which currency the station owners will receive the price of a gasoline cannister. The Lebanese law prohibits station owners from selling in dollars, therefore, from where will the station owners bring fresh dollars to import oil. This means the dollar exchange rate will increase on the black market due to the increasing demand on dollars.

A source familiar with the fuel oil file informed SBI about the possibility of entering the stage of “Shut Down” next week if the state didn’t resolve this problem.

  • Sawt Beirut International