Fuel distributors in Lebanon have urged the Council of Ministers to develop an economic plan and curb the continuous rise in the dollar exchange rate.
The Lebanese pound has lost more than 90 percent of its purchase power since end-2019, due to its devaluation against the dollar as the country battles an economic crisis that the World Bank has described as one of the worst in the world.
The exchange-rate problem has led to a fuel shortage in Lebanon, to the extent that the entire country was plunged into darkness earlier this year as it ran out of the raw materials to make electricity.
Matters have only been made worse by EXCLUSIVE revelations by TRENDS that billions of dollars are missing from the country’s central bank, Banque du Liban (BDL).
This, it may be noted, is the same central bank that has said Lebanon needs $12-15 billion to revive its economy.
The numbers could be at least half or nearly one-third if the aforementioned irregularities had not taken place.
Now, the electricity problem might have a solution in the pipeline, with Jordan sending it electricity in the new year through infrastructure in Syria.
However, the fuel situation remains problematic, with transactions still happening in dollar-terms.
Thus it was that the distributors held a meeting on Friday, December 31, following which they issued a statement urging ministers to convene at the earliest to stem the erosion of value of the Lebanese pound against the dollar.
Their statement, read by representative Fadi Abu Shakra, stressed that “the schedule of fuel prices will be issued next Tuesday.”
It reportedly added that “distributors can no longer bear the rise in the price of the dollar because they are incurring more losses than they can handle.”
They said they hoped that “the coming year will witness the end of the economic, financial, and political crises in the country, and that Lebanon and the Lebanese will enjoy stability and security.”
They added that they also hoped that “no decisions will be issued by the central bank that harm the Lebanese.”