Lebanon gov’t reduces fuel subsidies

The Lebanese government has agreed to reduce fuel subsides in a move that will double fuel prices in the country.

The decision was taken during an urgent meeting between Lebanese President Michel Aoun, caretaker Prime Minister Hassan Diab, Finance Minister Ghazi Wazni, Central Bank chief Riad Salameh and an online participation of Energy Minister Raymond Ghajar.

Following the meeting, Cabinet’s Secretary General Mahmoud Makiya said participants approved a proposal by the Finance Ministry to set the fuel prices at an exchange rate of 8,000 liras to one US dollar after it was 3,900 liras.

The decision is expected to lead to a skyrocketing rise in the fuel prices. The Energy Ministry, however, has not yet announce the new fuel prices.

The fuel crisis in Lebanon started on August 11, when the central bank decided to stop importing fuel on the exchange rate of 3,900 liras to dollar. The crisis led to prolonged electricity cuts on residential areas, adding more burdens on the Lebanese people.

Lebanon is facing a severe economic crisis, with the local currency losing nearly all of its value against the dollar, and streets witnessing massive protests and rallies.

The Arab country has been unable to form a new administration since the resignation of Diab's Cabinet on Aug. 10, 2020, six days after the massive Beirut port blast.